Sempra has reached an agreement to sell 45% of Sempra Infrastructure Partners to a consortium led by KKR, with Canada Pension Plan Investment Board (CPP Investments) participating, for a total of $10bn. The deal values the subsidiary, focused on energy infrastructure, at an enterprise value of $31.7bn. Upon completion, expected between the second and third quarter of 2026, the consortium will hold 65% of the company, while Sempra will retain 25% and Abu Dhabi Investment Authority (ADIA) will keep its 10% stake.
A partial divestment to strengthen the balance sheet
The payment will be made in three stages: 47% at closing, 41% by the end of 2027, and the remainder about seven years later. This structure allows Sempra to generate interest income and gradually reallocate funds to its U.S. utility subsidiaries. The group thereby eliminates the need for equity issuances to finance its 2025–2029 capital plan.
This asset transfer is part of a broader value creation programme consisting of five initiatives aimed at simplifying the organisation, reducing risks and improving financial performance. According to company projections, the transaction could generate an average increase of $0.20 per share (EPS) annually over five years starting in 2027.
Confirmed launch of Port Arthur LNG phase 2
At the same time, Sempra Infrastructure Partners has taken the final investment decision for the second phase of the Port Arthur LNG terminal in Texas. The project will include two liquefaction trains, one LNG storage tank and associated facilities, with a nameplate capacity of 13 Mtpa (million tonnes per annum). Capital expenditures are estimated at $12bn, plus a $2bn payment for shared common facilities.
Funding for this phase is fully covered by equity capital. An investor consortium led by Blackstone Credit & Insurance, with KKR, Apollo and Goldman Sachs Alternatives, has acquired a 49.9% interest for $7bn. Sempra Infrastructure Partners retains a 50.1% majority stake.
Long-term offtake agreements and construction by Bechtel
Long-term sales contracts of 20 years have been signed with several buyers, including ConocoPhillips, EQT, JERA Co. Inc. and Sempra Infrastructure Partners. Additional offtake agreements are expected in the future to optimise project revenues.
Construction of this new phase has been awarded to Bechtel Energy Inc., which also delivered the first phase of the terminal. This continuity is intended to mitigate execution risks and improve economics by leveraging technical resources already deployed.
Sempra has also updated its 2025 earnings forecast, with EPS projected between $3.29 and $3.69 under GAAP. Adjusted EPS guidance remains between $4.30 and $4.70. The company maintains its annual earnings growth target of 7% to 9% through 2029.
