US’s Sempra Clinches Mexico Gas Assets

Sempra Pipelines & Storage, a unit of San Diego-based Sempra Energy says it is acquiring the Mexican pipeline and gas infrastructure assets of Texas-based gas company El Paso for $300m. A spokesman says the deal will be financed with cash on hand. The acquisition involves El Paso’s wholly-owned natural gas pipeline and compression assets in Sonora. It also includes El Paso’s 50% interest in a joint venture with Pemex which operates 2 natural gas pipelines and a propane system in northern Mexico. The acquisition is expected to be accretive to Sempra Energy’s earnings by $0.05 per share in 2010 and $0.10 per share in 2011, the company says. The deal is expected to close in Q2. There were no financial advisors, according to the spokesman.