The power plant is an efficient resource serving the Desert Southwest power market
ArcLight Capital Partners has signed an agreement to acquire 100% stake in Griffith Energy, a 570MW gas-fired combined-cycle power plant, from Star West Generation.
The power plant is located in Mohave County, Arizona, near the California and Nevada borders.
The power plant is claimed to be an efficient resource serving the rapidly growing Desert Southwest power market. It supplies summer capacity and electricity under a long-term contract, to a regional load-serving entity.
ArcLight Capital Partners managing partner and founder Dan Revers said: “Griffith represents an attractive opportunity to own one of the premier gas-fired power assets serving the Desert Southwest, a market we know well from prior investments. We look forward to continuing Griffith’s strong operational and commercial performance.”
Subject to customary closing conditions, the deal is expected to close in the second quarter of this year, ArcLight stated.
Oaktree managing director John Van Benschoten said: “During our nine years of ownership, Griffith has demonstrated outstanding safety, reliability and operational performance.
“We would like to thank the plant employees as well as the team at Recurve Energy Asset Management, which has managed Griffith on our behalf. We are proud of the operational record the plant has achieved under our ownership.”
ArcLight is one of the leading infrastructure firms focused on North American energy assets.
ArcLight and Rattler recently formed 50/50 midstream joint venture
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The venture also plans to construct and operate a new 60,000Mcf/d natural gas cryogenic processing plant in Martin County, Texas along with incremental gas gathering and regional transportation pipelines.