Subscribe to our news feedSPS makes major pipeline industry acquisition
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Published on Friday 26th February 2010
Sempra Pipelines and Storage (SPS) has announced that it will acquire the infrastructure assets of El Paso Corporation. SPS will spend $300 million on the buyout, which includes the acquisition of El Paso Corporations whollyowned natural gas pipeline and a number of compression assets on the Mexican border near Sonora. The transaction will also see SPS take a 50 per cent stake in a jointventure with Pemex, Mexicos stateowned oil company, which operates two natural gas and one propane pipeline in northern Mexico. George S. Liparidis, president and chief executive officer of SPS, said: "This acquisition expands our scale and geographic footprint in one of the strongest growth regions in Mexico, while providing entry into the emerging propane pipeline business." He added: "These pipeline assets are backed almost entirely by longterm contracts and have a history of delivering solid, predictable revenue streams." Meanwhile, Pemex could be set to renew its rig contracts with Noble Corporation. 
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