Sempra has agreed to sell a 45% equity interest in Sempra Infrastructure Partners to a consortium led by KKR, alongside CPP Investments, in a $10bn transaction that highlights private equity’s growing role in global energy infrastructure.

The deal, which values Sempra Infrastructure at $22.2bn in equity and $31.7bn in enterprise value, is expected to close between the second and third quarter of 2026, subject to regulatory approvals. Upon completion, the KKR-led consortium will hold 65%, with Sempra retaining 25% and Abu Dhabi Investment Authority continuing to hold 10%.

Sempra said the transaction would strengthen its credit profile, eliminate the need for new equity issuance in its $40bn 2025–2029 capital plan, and increase its focus on regulated utilities, which will account for about 95% of future earnings.

In parallel, Sempra Infrastructure Partners has reached a final investment decision for Phase 2 of its Port Arthur LNG project in Texas. The $14bn expansion will include two new liquefaction trains and one storage tank, with commercial operations slated for 2030 and 2031. The development is backed by a $7bn equity investment from Blackstone Credit & Insurance, KKR, Apollo-managed funds, and Goldman Sachs Alternatives. Sempra will maintain majority ownership at 50.1%.

Bechtel Energy has been appointed to lead construction, leveraging its role in Phase 1 to deliver operational and cost efficiencies. Offtake agreements are already secured with ConocoPhillips, EQT, JERA, and Sempra Infrastructure Partners.

“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 Jeffrey W. Martin, chairman and CEO of Sempra.

Raj Agrawal, Global Head of Real Assets at KKR, added: “We are excited to grow this strategic partnership and are pleased to welcome CPP Investments alongside us as we work to expand Sempra Infrastructure Partners’ assets to help meet growing global demand for energy.”

Advisers on the transactions include BofA Securities, Citi, Goldman Sachs, Sullivan & Cromwell, Kirkland & Ellis, Simpson Thacher, and Baker Botts.

If completed, the deal would mark one of the largest private equity-led energy infrastructure transactions in North America this year, underscoring investor appetite for LNG and regulated utility assets.

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