Sempra sells stake in 550 MW gas plant in favour of renewables

• 13 years ago (2011-01-04)
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Sempra Generation, a subsidiary of Sempra Energy, has announced that it has completed the sale of its 50 per cent interest in the Elk Hills Power generation facility. The sale for a cash purchase price plus year-end cash distribution totaling $179 million was to Occidental Petroleum Corporation Inc.

The 550 MW natural gas fuelled power plant, located near Bakersfield, California, has been owned by Sempra Generation and Oxy through a joint venture since 2003. The Elk Hills plant has been described by Sempra as “... one of the cleanest and most efficient power plants in the nation fuelled by natural gas.” It is located in the middle of Occidental’s Elk Hills oil and gas field.

Sempra Generation, a subsidiary of San Diego-based Sempra Energy, has increasingly pursued renewable energy projects over traditional generation recently.

"This strategic sale comes at the right time for Sempra Generation as we continue to invest heavily in our growing portfolio of alternative energy projects throughout the Western U.S.," said Jeffrey W. Martin, president and chief executive officer of Sempra Generation.

The transaction has received approval from the Federal Energy Regulatory Commission, according to a Sempra.