ContourGlobal to enter U.S. gas-fired power market as part of $837 million deal

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ContourGlobal to enter U.S. gas-fired power market as part of $837 million deal

British power generator ContourGlobal said on Monday it was buying a portfolio of gas-fired power plants, including one each in Texas and New Mexico,

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British power generator ContourGlobal said on Monday it was buying a portfolio of gas-fired power plants, including one each in Texas and New Mexico, in a deal valued at $837 million, marking its entry into the lucrative U.S. market.

ContourGlobal said it was buying the assets, which include a power plant in Trinidad and Tobago with a combined capacity of 1,502 MW, from Western Generation Partners on a debt and cash free-basis. (https://refini.tv/3qLasx4)

The addition of the power stations, including the largest independent power asset in Trinidad and Tobago, offers development and expansion potential including battery storage and hybrid technology, ContourGlobal said.

Coal had been the primary fuel for U.S. power plants for much of the last century, but its use has been declining since peaking in 2007. Gas overtook coal as the leading fuel for U.S. power plants in 2016, according to federal data, and has held that title ever since.

The deal is expected to add $92 million to ContourGlobal’s adjusted core profit in the first year after completion of the transaction, which is expected to close in the first quarter of 2021.

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