Vistra Energy has agreed to acquire 1,054MW combined cycle, combustion turbine power plant from Koch Ag & Energy Solutions for around $350m.

The combined cyclegas turbine (CCGT) project is situated  in Odessa, Texas. The deal will gain access to supply of gas through three different gas pipelines in the future.

The Odessa plant commenced operations in August 2001.

Subject to customary closing conditions, the deal is expected to complete in the the third quarter of this year.

Vistra Energy CEO Curt Morgan said: "The Odessa plant is an efficient, well-maintained asset that will provide critical flexible generation capabilities to Luminant's ERCOT portfolio."

"Perhaps even more important, the Odessa plant brings geographic diversity to the Luminant fleet, as it is ideally situated in West Texas to capture the current natural gas price advantage in the Permian Basin.”

"By purchasing this asset at what we estimate to be a nearly 60% discount to new construction cost, and with a near-term fuel cost advantage, we believe the acquisition will provide incremental value to our shareholders in the years to come."

Vistra Energy, which is the parent company of TXU Energy and Luminant, markets retail electricity and value-added services to around 1.7 million residential and business customers in Texas.

Luminant produces and markets electricity and related products from a diverse fleet of generation facilities with a total capacity of 17,000MW, including 8,000 MW from coal and 6,000MW from gas. In addition, the company is constructing a larger solar facility in Texas.