Sempra Energy subsidiary Sempra U.S. Gas & Power on Tuesday said it had agreed to sell its 25 percent stake in a Midwest pipeline to Tallgrass Development LP for about $440 million in cash.
Sempra said it expects the sale to result in an after-tax loss of $27 million.
The Rockies Express Pipeline runs 1,700 miles from Wyoming and Colorado to Ohio, one of the largest natural gas pipelines in the country. Tallgrass already owned 50 percent of the pipeline, with Phillips 66 owning the other 25 percent.
Sempra also intends to permanently release uncontracted capacity it holds on the pipeline that had been released on an interim basis, accelerating losses that would otherwise be realized through 2019.