BP Amoco is to become a full-scale operator and developer of large power plants following a reorganisation in the wake of its acquisition of US oil company Arco.
BP Amoco Gas will be established by 1 September as the fourth main business unit of the company, responsible for natural gas marketing and power. The other three business units are exploration and production, refining and marketing, and chemicals.
The move reflects the increased importance of gas to the company, following the Amoco/Arco takeovers. Whereas gas represented just 15% of BP’s reserves, it accounts for 40% of the enlarged company, and power generation is seen as a key market worldwide for the fuel.
BP Amoco has developed and operated small combined heat and power and solar schemes for a few years and has also initiated some large gas-fired projects in the UK.
However, it is now expected to become a major developer and operator of large combined-cycle gas turbine plants.