INVESTMENTS IN UNCONSOLIDATED ENTITIES

6 Months Ended

Jun. 30, 2017

Investments [Abstract]

Investments in Unconsolidated Entities

INVESTMENTS IN UNCONSOLIDATED ENTITIES

Sempra Energy uses the equity method to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control. We provide additional information concerning our equity method investments in Note 3 above and in Notes 3 and 4 of the Notes to Consolidated Financial Statements in the Annual Report.

SEMPRA SOUTH AMERICAN UTILITIES

In February 2017, Sempra South American Utilities recorded the equitization of its $19 million note receivable due from Eletrans, resulting in an increase in its investment in this unconsolidated joint venture.

SEMPRA MEXICO

Sempra Mexico invested cash of $72 million in its unconsolidated joint venture, IMG, in the six months ended June 30, 2017.

SEMPRA RENEWABLES

Sempra Renewables invested cash of $18 million in its unconsolidated joint ventures in the six months ended June 30, 2016.

SEMPRA LNG & MIDSTREAM

Sempra LNG & Midstream capitalized $24 million of interest during both the six months ended June 30, 2017 and 2016 related to its investment in Cameron LNG JV, which has not commenced planned principal operations. During the six months ended June 30, 2017, Sempra LNG & Midstream invested cash of $1 million in this unconsolidated joint venture.

In May 2016, Sempra LNG & Midstream sold its 25-percent interest in Rockies Express, as we discuss in Note 3.

GUARANTEES

At June 30, 2017, we had outstanding guarantees aggregating a maximum of $4.7 billion with an aggregate carrying value of $44 million. We discuss these guarantees below and in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.

Sempra Mexico

IMG is a joint venture between a subsidiary of IEnova and a subsidiary of TransCanada. IEnova has an indirect 40-percent ownership interest and TransCanada has an indirect 60-percent ownership interest in IMG. IEnova and TransCanada have each provided guarantees to third parties associated with construction of IMG’s Sur de Texas - Tuxpan natural gas marine pipeline. The aggregate amount of the obligations guaranteed by IEnova shall not exceed $288 million and will terminate upon completion of all guaranteed obligations. IEnova expects the construction giving rise to these guarantees to be completed by the end of 2018.