Sempra Energy will step back from a plan to buy shares by US$500 million and will instead use the cash to help build a US$2 billion natural gas pipeline in Mexico.During a keynote, company executives revealed the firm its now more interested in making money from energy projects in Latin America. In fact, its Mexican subsidiary Ienova may sell stock to finance expansions in Mexico.
Sempra had previously said it may repurchase as much as US$2 billion of its own shares.
A joint venture between TransCanada Corp. and Sempra won a US$2.16 billion contract with Mexico to build an underwater pipeline that will move more U.S. gas supplies into the country.
Last year, Sempras Ienova unit agreed to buy a stake in gas pipeline and storage operator Gasoductos de Chihuahua. On Tuesday, Ienova said it may also bid in auctions that the country is holding to secure renewable energy supplies.