Sempra LNG picks up Dynegy's interest in Hackberry LNG terminal for $20 million

Sempra LNG Corp. Tuesday entered into an agreement to acquire all of Houston-based Dynegy Inc.'s interest in the company's proposed LNG terminal project at Hackberry, La., for $20 million.

Feb. 18, 2003

By OGJ editors

HOUSTON, Feb. 18 -- Sempra LNG Corp., a unit of San Diego-based Sempra Energy, Tuesday entered into an agreement to acquire all of Houston-based Dynegy Inc.'s interest in the company's proposed LNG terminal project at Hackberry, La., for $20 million as well as "additional contingent payments based upon project development milestones and performance," Dynegy said in a statement.

The terminal, Hackberry LNG Terminal LLC, will be capable of processing enough LNG to send out 1.5 bcfd of natural gas. The terminal will have tow docks and a storage capacity of 10.4 bcfe. Commercial operation is slated for early 2007.

"This agreement is yet another example of the new Dynegy executing on a self-restructuring plan designed to keep our business model focused on our core operating units and to prudently manage our capital expenditure commitments," said Bruce A. Williamson, Dynegy president and CEO.