Equinor has agreed to acquire an 87.71 per cent interest in the Lackawanna Energy Centre, a 1,483 MW gas-fired combined-cycle power plant in Pennsylvania, for $940 million, subject to a potential price adjustment at closing.
The acquisition marks a step in Equinor’s strategy to build
an integrated power business in selected markets and expands its presence in
the PJM wholesale electricity market, the largest in the US.
Lackawanna was developed by Invenergy, which will retain the
remaining Class A and Class B shares and continue operating the facility.
The companies will also explore further collaboration
opportunities.
“Electricity demand in PJM is growing rapidly, driven by
electrification, data centres and industrial activity. This acquisition gives
Equinor further access to the largest power market in the US and is located
close to our significant Appalachian gas position. It also provides early cash
flow and long-term value potential. We look forward to working with Invenergy
as an experienced operator and exploring further collaboration,” says Helge
Haugane, executive vice president for Power.
Lackawanna is considered one of the PJM market’s largest and
most efficient gas-fired plants.
PJM supplies electricity to nearly 70 million consumers
across 13 states and is expected to see continued demand growth, driven by data
centres, industrial activity and electrification.
The plant benefits from access to competitively priced
natural gas and is located close to Equinor’s Appalachian Basin operations.
The company’s non-operated gas assets in the region produce
more than 1.7 billion cubic feet per day for the northeastern US.
Equinor said the investment structure provides upfront
preferred cash flow and visibility on long-term generation, supported by
investor protection mechanisms.
The interest is being acquired from funds managed by Global
Infrastructure Partners (GIP), part of BlackRock.
The transaction builds on Equinor’s long-standing US
presence and its strategy of developing power positions where it can combine
energy assets, market access and existing capabilities.
Completion remains subject to customary regulatory approvals. -OGN/TradeArabia News Service
