Sempra has taken a decisive step to consolidate its position as a leader in the regulated utilities sector in the United States. As part of this strategy, the company has approved a US$14 billion investment to expand the Port Arthur LNG project in Texas. In addition, it announced the sale of 45% of its stake in Sempra Infrastructure Partners.
Business restructuring through divestments
As part of its capital recycling program, Sempra has agreed to sell 45% of Sempra Infrastructure Partners to affiliates of KKR and CPP Investments. This transaction, valued at US$10 billion, allows the company to strengthen its balance sheet, reduce exposure to unregulated businesses and focus its efforts on earnings growth within the U.S. regulatory framework.
The deal, which could close between the second and third quarters of 2026, projects an average accretion of $0.20 in earnings per share between 2027 and 2031. In addition, Sempra holds a 25% stake, while ADIA retains the remaining 10%. With this structure, the KKR-led consortium becomes the new majority shareholder.
Port Arthur LNG Phase 2: key expansion for global market
In parallel, Sempra Infrastructure Partners has made the final investment decision to develop Phase 2 of the Port Arthur LNG project. Phase 2 of the Port Arthur LNG projectproject, located in Jefferson County, Texas. This phase includes the construction of two liquefaction trains trains, a new storage tank and other associated facilities, with an estimated capacity of 13 million tons per year.
The project is financially backed by Blackstone, KKR, Apollo and Goldman Sachs Alternatives, which have acquired a 49.9% stake. Sempra retains control with a 50.1% stake. Engineering and construction will be carried out by Bechtel Energy, with operations scheduled to begin in 2030 and 2031.
The 20-year sale and purchase agreements have already been signed with key players such as ConocoPhillips such as ConocoPhillips, JERA and EQT, which consolidates the profitability and long-term viability of the project.
Financial impact and growth projections
With these decisions, Sempra improves its credit profile and eliminates the need to issue shares under its 2025-2029 capital plan. The company projects a compound annual earnings per share growth rate of 7% to 9% for that period, reflecting a strategy focused on generating sustainable value for shareholders and customers.
The capital plan update will be filed in the fourth quarter of 2026, upon completion of the rate review at Oncor, another of Sempra’s regulated subsidiaries.
Together, these actions reinforce the company’s strategic shift to a more streamlined, resilient structure focused on key North American energy markets.
Source and photo: Sempra
