Shell sells Rhode Island power plant to Constellation Energy for $715 million, acquires Hunlock Creek (updated)
UPDATE 2-Shell sells Rhode Island power plant to Constellation Energy for $715 million, acquires Hunlock Creek Adds details paragraphs 4, 6-8
Sept 10 (Reuters) - Shell's SHEL.L North American unit said on Thursday it has agreed to sell its interests in a gas-fired power plant complex in Rhode Island to Constellation Energy CEG.O for $715 million, while also expanding into the lucrative U.S. Mid-Atlantic power market.
Separately, the British oil and gas major will also acquire 100% equity in Hunlock Creek Generating, which owns 169 MW of natural gas-fired generation capacity in Pennsylvania.
The deals give Shell a larger footprint in the biggest North American power market — PJM Interconnection — where demand from data centers has sent prices paid to power plant operators skyrocketing over the last two years.
"We selectively invest in assets that strengthen our market position and create value, while remaining ready to realize value when market conditions present attractive opportunities," said Andrew Smith, Shell's president of trading & supply.
The transaction also gives Constellation Energy, which is the country's biggest independent power producer, a presence in New England, where tight power supplies have pushed up electricity costs.
Under the deal, Constellation will acquire 100% interest in RISEC Holdings, which owns and operates the Rhode Island State Energy Center, from Shell.
The natural gas-fired energy center includes two combustion turbines and one steam turbine, and is capable of generating up to 609 megawatts of electricity.
Both the transactions are subject to regulatory approvals and are expected to close in the first quarter of 2027.
(Reporting by Pooja Menon in Bengaluru and Laila Kearney in New York; Editing by Shailesh Kuber and Cynthia Osterman)