Oil & Gas - Argentina

Sempra Buys Dominion Gas Assets

Sempra Buys Dominion Gas Assets

By -

San Diego-based Sempra Energy (NYSE: SRE) has signed an agreement with Dominion Resources (NYSE: D) to purchase Dominion's natural gas and electricity assets in Argentina for US$145mn in cash, Sempra said in a statement.

The deal sees Sempra acquiring an additional 21.5% in holding companies that control Camuzzi Gas Pampeana and Camuzzi Gas del Sur, raising its total stake to 43%. The Camuzzi gas companies serve a combined 1.2 million customers in central and southern Argentina, delivering approximately one third of all the gas distributed in the country.

The agreement also includes Sempra's acquisition of 25% of a holding company with a controlling interest in electricity distributor Empresa Distribuidora de Energia Atlantica (Edea).

Dominion acquired ownership interests in the three Argentine utilities through its acquisition of Consolidated Natural Gas Co. in January 2000.

The deal will require approval by Argentine antitrust authorities. The companies do not anticipate any problems in the review process, which should be completed by fall.