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NRG Energy Joins SRW Cogeneration LP With 50% Share
Conoco subsidiary, Conoco Global Power (CGP) has tapped subsidiaries of NRG Energy to help own and operate SRW Cogeneration LP, and its holdings. NRG Energy purchased a 50% stake in the company at an undisclosed cost. Currently, the partnership owns, and will operate a $260 million power facility near Orange, TX, now under construction.
The two companies will share costs and responsibilities for the 420 MW natural gas-fired cogeneration plant located at the Dupont Co.'s Sabine River Works (SRW) petrochemical facility.
"The Sabine River Works project offers us an opportunity to diversify into gas-fired generation, the most efficient power generation available," said Alan Williams, vice president of NRG South Central Generating LLC. "In addition, we believe our new alliance with Conoco will be very beneficial to both companies."
Some of the plant's electricity and all of the plant's steam will be sold to the Dupont facility. Electricity also will be sold to PG&E Energy Trading, with the remaining capacity put on the merchant market.
"NRG Energy's record as a world-class power project developer and plant operator is well respected in the industry," said Ron Walsh, president, Conoco Global Power. "We are very pleased to have this exceptional company join us as an equal partner in the SRW power plant venture."
NRG said that construction on the plant is almost 50% complete, and the project is expected to be accretive to earnings after the plant begins commercial operation during the summer of 2001.
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