Centrica sells UK gas plants to EPH in shift to flexible supply
LONDON (Reuters) — British Gas parent company Centrica has agreed to sell its two biggest gas-fired power plants to Czech peer EPH for $401 MM, pushing forward with its plan to become a nimbler energy supplier in a fiercely competitive market.
Centrica's Langage and South Humber power plants, which jointly employ around 130 people, have an installed capacity of 2.3 GW and hold contracts to provide back-up power for the coming 4 yr.
"The transaction is consistent with Centrica's strategy to shift investment towards its customer-facing businesses," Centrica said in a statement.
The news comes a day after Centrica announced the permanent closure of its Rough gas storage site, Britain's largest.
Two weeks ago it sold its Canadian oil and gas assets, highlighting its move away from traditional energy.
Instead, Centrica said it wants to focus on flexible power generation assets. It has already invested in fast-response gas peaking plants and a power storage facility.
For EPH, the purchase builds on its existing power plant portfolio in Britain, which consists of the Eggborough and Lynemouth power stations.
The company has been snapping up coal, gas and nuclear power assets in recent years, betting they will remain needed and investments will pay off once electricity prices rise.
Reporting by Karolin Schaps; Editing by David Goodman and Jason Neely
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