Conoco subsidiary, Conoco Global Power (CGP) is selling a 50%stake in SRW Cogeneration Ltd. Partnership to subsidiaries of NRGEnergy. Currently, the partnership owns, and will operate a $260million power facility near Orange, TX, now under construction.
The two companies will share costs and responsibilities for the420 MW natural gas-fired cogeneration plant located at the DupontCo.’s Sabine River Works (SRW) petrochemical facility.
“The Sabine River Works project offers us an opportunity todiversify into gas-fired generation, the most efficient powergeneration available,” said Alan Williams, vice president of NRGSouth Central Generating LLC. “In addition, we believe our newalliance with Conoco will be very beneficial to both companies.”
Some of the plant’s electricity and all of the plant’s steamwill be sold to the Dupont facility. Electricity also will be soldto PG&E Energy Trading, with the remaining capacity put on themerchant market.
“NRG Energy’s record as a world-class power project developerand plant operator is well respected in the industry,” said RonWalsh, president, Conoco Global Power. “We are very pleased to havethis exceptional company join us as an equal partner in the SRWpower plant venture.”
NRG said that construction on the plant is almost 50% complete,and the project is expected to be accretive to earnings after theplant begins commercial operation during the summer of 2001.
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