Sempra Energy’s Mexican subsidiary, Infraestructura Energética Nova, S.A.B. de C.V., and Petróleos Mexicanos (PEMEX) recently announced that IEnova has agreed to purchase PEMEX's 50-percent equity interest in the Gasoductos de Chihuahua joint venture for $1.325 billion, plus the assumption of approximately $170 million in net debt.

According to San Diego-based Sempra, the acquired joint-venture assets are under long-term contracts and include three natural gas pipelines, an ethane pipeline, a liquid petroleum gas (LPG) pipeline and a LPG storage terminal. As a result of this transaction, IEnova will own 100 percent of the equity capital in Gasoductos de Chihuahua.

In addition, under the terms of the agreement, IEnova and PEMEX shall maintain a joint venture for the Los Ramones Norte pipeline project. This partnership will allow IEnova and PEMEX to continue building on their successful history of joint development of energy infrastructure projects in Mexico, Sempra said.

“This acquisition creates incremental value for IEnova and Sempra Energy shareholders by expanding our asset base and operating capabilities in Mexico,” said Mark A. Snell, president of Sempra Energy. “It provides opportunities to leverage our resources and grow in the marketplace.”

According to Sempra, the transaction is expected to be about $0.05 accretive to Sempra Energy's diluted earnings per share in 2016, growing to approximately $0.10 per share by 2019 and is expected to be financed with a combination of debt and equity issuances at IEnova.

The transaction is expected to close within 120 days, after approval by IEnova shareholders and the satisfactory completion of a Mexican antitrust review and other customary closing conditions.

IEnova develops, builds and operates energy infrastructure in Mexico.