EGCO bolsters expansion with acquisition of 50% Interest in Compass Portfolio
Electricity Generating Public Company Limited or EGCO Group has further strengthened its presence in the US through the acquisition of a 50% interest in the 1,304 MW Compass Portfolio.
This acquisition of operational power plants offers an important new growth prospect for EGCO Group in the United States which will be immediately accretive to EGCO Group.
Thepparat Theppitak, EGCO Group's President, said that EGCO Compass II, LLC, a wholly owned subsidiary of EGCO domiciled in the United States, entered into a purchase and sale agreement with affiliates of Lotus Infrastructure Partners on September 8, 2023, to acquire the 50% ownership interest in a portfolio of three operational natural gas-fired combined cycle power facilities (CCGT) situated in the Northeast of the US.
The Compass Portfolio comprises Marcus Hook Energy, L.P., a 912 MW CCGT facility located just outside of Philadelphia, PA as well as Milford Power, LLC and Dighton Power, LLC, which are 205 MW and 187 MW CCGT facilities, respectively, located in the state of Massachusetts.
Marcus Hook, Milford, and Dighton are all situated in strategic locations proximate to the major metropolitan load centres of the cities of Philadelphia, Boston and Providence. These areas have high barriers to entry for new capacity sources and robust energy transition policies that require firming capacity as well as energy support.
The Compass Portfolio benefits from a unique capacity sales contract at Marcus Hook for the majority of its capacity with the Long Island Power Authority (LIPA) while the balance is sold in PJM market. The capacity sales arrangements at Milford and Dighton are settled through the ISO New England market (ISO-NE). In addition to capacity sales, these facilities sell energy and ancillary services into the market.
"The Compass Portfolio investment will be an accretive investment which is aligned with EGCO Group's strategic objective for acquiring high-quality gas-fired power facilities that are profitable and that support global energy transition objectives", added Thepparat.
The transaction closing will be subject to the completion of traditional closing conditions for such transactions.
