National Grid, an energy delivery company, has completed its sale of the 2,480 megawatt Ravenswood Generating Station in New York City to TransCanada, another major energy supplier.
The sale of the plant, which was a condition of the New York Public Service Commissions approval of the acquisition of the KeySpan corporation last year, was sold to TransCanada Corporation for $2.9 billion.
This acquisition represents a significant expansion of our energy business into one of the most important power markets in North America, said Hal Kvisle, TransCanada president and chief executive officer.
TransCanada is a multinational corporation with headquarters in Calgary, Alberta. A brief analysis of its facilities reveals the company as a major player in the global oil and natural gas industry.
With a network of more than 36,500 miles of pipeline, the company taps into virtually every major gas supply basin in North America. TransCanada is also one of the continents largest providers of gas storage with approximately 355 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, controls or is developing approximately 10,900 megawatts of power generation.
Companies in Western Canada have experienced a profit boom in recent years as new gas and oil deposits have been found that only recently have become exploitable.
TransCanada has benefited greatly from these discoveries and was able to purchase the plant in Ravenswood due to rising profits.
The company has seen profits grow by more than $10 million since 2003.
Chief Executive Steve Holliday was quite happy with the sale.
We are very pleased with the outcome of this process. We have quickly delivered on our obligations to the New York Public Service Commission to sell Ravenswood as well as delivering value for our shareholders, he said.
The Ravenswood Generating Station is primarily fuelled by natural gas and provides more than 20 per cent of New York Citys electricity supply. It was acquired as part of National Grids acquisition of KeySpan.
Despite the sale, National Grid remains the largest investor-owned power producer in New York State, owning more than 4,000 megawatts of contracted electricity generation that provides power to more than one million Long Island Power Authority customers.
Following the sale of Ravenswood, Tom King, National Grids executive director responsible for electricity distribution and generation said, On behalf of the company, I would like to thank all of our colleagues at Ravenswood for their hard work and solid dedication to power production at the plant.
Although they have been part of National Grid for only a relatively short time, their contribution has been vital to the sale of the generating station and we wish them every success in their continuing careers with TransCanada Corporation.
With more than 50 years experience, TransCanada claims it is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities.