Sempra, an international energy company based in San Diego, California, has agreed to sell a 45% equity interest in its infrastructure unit to KKR  and Canada Pension Plan Investment Board ( CPP Investments ).

Subject to adjustments, the transaction is estimated at US$10 billion, giving Sempra Infrastructure Partners an equity value of US$22.2 billion and an enterprise value of US$31.7 billion.

Upon closing, a KKR-led consortium will become the majority owner of  the infrastructure platform, holding a 65% equity stake, while Sempra will retain a 25% interest alongside Abu Dhabi Investment Authority's ( ADIA ) existing 10% stake.

BofA Securities is advising Sempra on the transaction, with Sullivan & Cromwell as the legal adviser. For KKR, Citi is serving as the financial adviser and Simpson Thacher as the legal adviser. Kirkland & Ellis is serving as legal adviser to CPP Investments.

The deal is part of Sempra’s efforts to simplify its business model, improve financial performance, and reduce risks.

"The transactions announced today further Sempra's corporate strategy by advancing the company's capital recycling programme and transition to a leading US utility growth business," said Sempra chairman and chief executive officer Jeffrey Martin.

Meanwhile, Sempra Infrastructure Partners has reached a final investment decision to develop, construct, and operate Port Arthur LNG Phase 2 in Jefferson County, Texas.

The new phase will include two natural gas liquefaction trains, one LNG storage tank, and associated facilities with a nameplate capacity of 13 million tonnes per annum.

Incremental project capital expenditures at Phase 2 are estimated at US$12 billion, plus a US$2 billion payment for shared common facilities.  Commercial operations of Trains 3 and 4 are expected to start in 2030 and 2031, respectively.

Funding for Phase 2 is supported by an equity investment led by Blackstone Credit & Insurance, together with an investor consortium including KKR, Apollo-managed funds, and Private Credit at Goldman Sachs Alternatives. Together, these investors have acquired a 49.9% equity interest for US$7 billion. Sempra Infrastructure Partners has retained a 50.1% majority stake in the project.