US energy company El Paso Corporation has agreed to sell several of its Asian power assets to a subsidiary of Globeleq Ltd. for approximately $109 million.
The assets include power plants in Pakistan, Indonesia, Bangladesh, and the Philippines. The sales are expected to close by the end of the fourth quarter of 2005.
This latest sale agreement means that El Paso, which operates North America’s largest natural gas pipeline system, has now contracted or sold all but one of its Asian power plants, enabling it to recoup a total of $463 million.
The sales are part of the Houston-based company’s ongoing plan to reduce its debt, net of cash, to approximately $15 billion by year-end 2005. Since its March 17, 2005 long- range plan update, the company has announced or closed $700 million of its targeted $1.2 billion to $1.6 billion of asset sales.