To be acquired by a special purpose affiliate of LS Power, the natural gas generation portfolio has three projects, namely the 1.3GW Jack County, the 280MW Johnson County, and the 568MW RW Miller power plants, which are located in the ERCOT North region
Brazos Electric to sell 2.1GW natural gas-fired power projects to LS Power. (Credit: Monika from Pixabay)
LS Power has signed an agreement to acquire 2.14GW natural gas-fired power projects in the US from electrical generation and transmission cooperative Brazos Electric Power Cooperative.
The projects, which are all operational, are located in the Electric Reliability Council of Texas (ERCOT) North region of Texas.
The financial terms of the deal were not disclosed.
To be acquired by a special purpose affiliate of LS Power, the natural gas generation portfolio includes dual-fuel capability, on-site fuel oil storage as well as gas transport and storage arrangements.
The portfolio has three natural gas-fired power projects, namely the 1.3GW Jack County, the 280MW Johnson County, and the 568MW RW Miller plants.
Jack County features two baseload combined cycle blocks located in Jack County, while the Johnson County project has a combined cycle plant in Johnson County.
The RW Miller natural gas generation project has four peaking units and is located in Palo Pinto County.
LS Power generation president Nathan Hanson said: “We are excited to add these three projects to our generation portfolio as we continue to evaluate additional expansion opportunities in Texas.
“These three generation projects we are acquiring provide critical, reliable energy supply to an ERCOT market that is experiencing continued load growth. These projects provide for considerable flexibility and operational redundancy, which are key to balancing the intermittency of renewables and supporting ERCOT’s reliability requirements.”
LS Power said that the Johnson County and RW Miller projects are dual-fuel resources that provide important fuel security during times of gas scarcity with their on-site fuel oil storage.
The Jack County project is said to benefit from firm transportation of gas and firm arrangements for its storage.
Subject to customary regulatory approvals, the deal is expected to close in early June 2023.
Founded in 1990, LS Power develops, operates, and invests in the power and energy infrastructure sector.
The US-based company claims to have a 14GW gas generation fleet, which is said to be a significant element of its energy transition portfolio.
In late 2022, LS Power completed the acquisition of the 835MW Rolling Hills natural gas-fired power plant in Wilkesville, Ohio from an affiliate of ArcLight Capital Partners.