Shell acquires Hunlock creek power plant from Constellation Energy and sells it to them for $715 Million

Shell's North American unit announced on Thursday that it had agreed to sell its interest in a complex of gas-fired power plants in Rhode Island, USA, to Constellation Energy. The company will also expand into the lucrative U.S. Mid-Atlantic energy market.

Separately the British oil major will also purchase 100% of Hunlock Creek Generating's equity, which has 169 MW natural gas-fired power generation capacity in Pennsylvania.

Shell now has a bigger 'footprint' in North America's largest power market, PJM Interconnection. Prices paid by power plant operators have skyrocketed over the last two years due to the 'demand from data centres.

Shell's President of Trading & Supply, Andrew Smith, said: "We selectively invest in assets that strengthen our market position and create value while remaining ready for value to be realized when market conditions offer attractive opportunities."

Constellation Energy - the largest independent power producer in the United States - will now have a presence in New England where electricity prices are high due to a lack of power.

Shell will sell Constellation a 100% stake in RISEC, which operates the Rhode Island State Energy Center.

The natural gas-fired power center includes two combustion turbines, one steam turbine and is capable of producing up to 609 Megawatts of electrical energy.

Both transactions are expected to close in the first quarter 2027, pending regulatory approval.

(source: Reuters)