UK utility Centrica has paid around GBP150 million to a subsidiary of French oil company Total in order to acquire its share in the Humber Bank gas fired power station in north Lincolnshire, UK.
Centrica, parent firm to UK gas incumbent British Gas, has agreed to pay GBP46 million to Total’s subsidiary, Chanter Petroleum, to acquire its 40% stake in the holding company of the Humber Bank facility. Once the transaction is completed Centrica will fully own the power plant.
According to the AFX news agency, taking into account the cash held by the holding company and Chanter Petroleum’s lease financing obligations, the purchase price equates to GBP150 million or GBP294 per kilowatt.
This is an important deal that enables us to increase the amount of generation we can call on to supply our British Gas customers, AFX quoted Centrica chief executive Sir Roy Gardner as saying.
As a result of the purchase Centrica now has 4,000 megawatts of power capacity, enabling it to cover 54% of its peak residential demand.