Sempra Divests Non-Core Assets to Refocus on U.S. Utilities

Sempra, a prominent North American energy infrastructure company, has unveiled plans to streamline its portfolio by divesting non-core assets. This strategic shift is intended to support the continued growth of its regulated utility businesses in Texas and California.

As part of this initiative, Sempra plans to sell Ecogas México, which operates natural gas distribution services in the Mexicali, Chihuahua, and La Laguna-Durango regions. Ecogas México is a key player in the Mexican energy market, ranking as the fifth-largest natural gas distributor with over 5,000 kilometers of pipelines serving more than 600,000 customers.

In addition to the Ecogas divestiture, Sempra will also reduce its stake in Sempra Infrastructure, a major subsidiary known for its liquefied natural gas (LNG) assets and related energy infrastructure across North America. This follows previous sales of a 20% stake to Kohlberg Kravis Roberts & Co. in 2021 and a 10% stake to the Abu Dhabi Investment Authority in 2022.

The proceeds from these divestments will contribute to Sempra’s updated five-year capital plan, which now includes a 16% increase in projected investment, focusing heavily on utility growth and modernization in the U.S. The plan aligns with Sempra’s long-term vision to simplify its business model, reduce dependency on equity issuances, and strengthen its financial foundation.

Jeffrey W. Martin, Chairman and CEO of Sempra, emphasized that these decisions are aimed at creating shareholder value while maintaining a strong balance sheet. The company expects to complete the transactions within 12 to 18 months, subject to regulatory approvals and final agreements.

These moves reflect Sempra’s broader strategy to focus on high-growth, low-risk opportunities in regulated U.S. energy markets, ensuring reliable service delivery and infrastructure development for millions of American customers.