Sempra Energy, a Fortune 500 company, boosted its natural gas storage capacity by acquiring EnergySouth's two underground sites that will have the capacity to hold 57 billion cubic feet of natural gas when fully developed, a news release said. Sempra also acquired Mobile Gas Service Corp., an Alabama natural gas distribution utility owned by EnergySouth. Mobile Gas serves about 93,000 customers in southwest Alabama.
"This acquisition supports our natural gas strategy by expanding our Gulf Coast operations to serve key markets where gas demand outpaces the national average," Sempra CEO Donald E. Felsinger said in a statement.
Shareholders of EnergySouth will receive $61.50 per share for their EnergySouth stock, according to a news release. The deal is expected to contribute up to 30 cents per share in 2012, Felsinger said.
Upon completion of the acquisition, Sempra Energy's Sempra Pipelines & Storage unit will operate the EnergySouth Inc. assets. The transaction, which is subject to approval by the shareholders of EnergySouth and regulators, as well as other customary conditions, is expected to close by year-end. The boards of directors of Sempra Energy and EnergySouth both have approved the transaction.
Mobile Gas Service Corp., EnergySouth's natural gas distribution company, purchases, sells and transports natural gas through pipeline networks to homes, businesses, and industry in Mobile and surrounding areas.
Sempra, based in San Diego, is an energy services holding company with 2007 revenues of more than $11 billion. Sempra has more than 29 million consumers worldwide.
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