BG Group has signed an agreement Silver Ship MP Partners for BG’s purchase of the Masspower power plant, a 262MW gas and oil fired combined cycle facility located in Massachusetts.
Closing of the $150m sale is expected to occur in the second quarter of 2007.
The Masspower facility supplies power into the Independent System Operator New England (ISO-NE). Masspower is BG’s third power acquisition in New England. In October 2006 BG acquired the 170MW combined cycle Dighton power plant in Bristol County, Massachusetts and in March 2007 BG acquired the 805MW gas and oil fired combined cycle Lake Road facility in Bristol County, Massachusetts.
Martin Houston, Executive Vice President and Managing Director of BG North America, Caribbean and Global LNG said:? ‘Masspower is in our focus market, ISO-NE, which is particularly attractive given the rapidly tightening reserve margins in the region and the newly implemented Forward Capacity Market.
‘Masspower is an excellent asset in a favourable location that will allow BG to enhance its portfolio of power assets and gas positions in the northeast US.’