Equinor to Acquire 87.71% Stake in Pennsylvania Power Plant
Equinor has agreed to acquire a major stake in the Lackawanna Energy Center, a 1,483-megawatt gas-fired power plant in Pennsylvania, for $940 million.
What Readers Should Know
- Equinor will acquire 87.71% of the Class A shares in the Lackawanna Energy Center.
- The agreed purchase price is $940 million, subject to adjustment at closing.
- The plant is a 1,483-megawatt gas-fired power facility in Pennsylvania.
- Funds managed by Global Infrastructure Partners, part of BlackRock, are selling the stake.
- Invenergy will retain the remaining ownership and continue to operate the plant.
- The transaction remains subject to customary regulatory approvals.
MONTREAL (Oil Monster): Equinor announced a major expansion of its presence in the U.S. electricity market.
The company reached an agreement to acquire a major stake in the Lackawanna Energy Center, a 1,483-megawatt gas-fired power plant in Pennsylvania. The stake will be acquired from funds managed by Global Infrastructure Partners, which is part of BlackRock.
The Norwegian energy company will purchase 87.71% of the Class A shares for $940 million, although the final price could be adjusted at closing. The remaining Class A shares and all Class B shares will stay with Invenergy AMPCI Thermal Power LLC. Invenergy will also continue to operate and manage the plant.
Why Equinor Is Buying the Stake
Equinor said the deal will provide access to the largest wholesale power market in the United States. The investment is expected to provide Equinor with near-term cash flow and longer-term earnings potential.
How the Plant Connects to Equinor’s Gas Operations
Lackawanna Energy Center is located in proximity to Equinor’s substantial natural gas operations in the Appalachian Basin. The company’s non-operated Appalachian assets currently supply more than 1.7 billion cubic feet of gas per day to customers in the northeastern U.S.
Further Opportunities in the PJM Market
Meanwhile, the two companies plan to examine further opportunities to work together in the PJM electricity market.
Regulatory Approval Remains Pending
The transaction remains subject to customary regulatory approvals.
Frequently Asked Questions
What is Equinor acquiring?
Equinor is acquiring 87.71% of the Class A shares in the Lackawanna Energy Center.
How much will Equinor pay?
Equinor will pay $940 million, although the final price could be adjusted at closing.
What is the Lackawanna Energy Center?
It is a 1,483-megawatt gas-fired power plant in Pennsylvania.
Who will continue to operate the plant?
Invenergy will continue to operate and manage the plant.
What must happen before the transaction closes?
The transaction remains subject to customary regulatory approvals.