Astoria Energy II in New York Enters Commercial Operation
Jul 05, 2011, 12:27 ET
NEW YORK, July 5, 2011 /PRNewswire/ -- GDF SUEZ and International Power (70% owned by GDF SUEZ) are pleased to announce that the Astoria Energy II plant in New York City commenced commercial operation on July 1. The 575MW gas-fired project, in which IPR-GDF SUEZ North America has a 30% equity interest, will sell its entire output to the New York Power Authority under a 20-year contract. The total project cost of Astoria Energy II is approximately US$1.3 billion (euro 0.9 billion).
New York, along with the New England, Texas and Mid-Atlantic states, is one of the four key U.S. markets for IPR-GDF SUEZ North America.
Gerard Mestrallet, Chairman and CEO of GDF SUEZ, commented, "Developing an enhanced and strategic presence in the high-value New York City market has been a key objective for us. When we acquired our initial stake in Astoria Energy, the expansion of the project on the adjoining site provided an attractive option to add further value. The technology, location, and long-term supply contracts of the Astoria Energy facilities are all solid assets, and are well positioned to meet a strong demand for environmentally sound, in-city power production."
Philip Cox, CEO of International Power, said, "New York is an attractive market and this project adds to our existing interest in the 575MW Astoria Energy I facility. Backed by a long-term offtake contract with one of the largest state public power organizations in the United States, Astoria Energy II further strengthens our North America portfolio."
This project is funded by debt and equity in a 72:28 debt-to-equity ratio. IPR-GDF SUEZ North America's equity interest in the project amounts to US$109 million (euro 75 million) for its 30% share.
Notes to Editors
An exchange rate of US$1:euro 0.6882 has been used in this announcement.
IPR-GDF SUEZ North America has a 59% interest in the Astoria Energy I project.
IPR-GDF SUEZ North America has sustainable positions in power generation, natural gas and LNG, and retail electricity sales in the United States, with strongholds in the Northeast and Texas. As the top LNG importer in the United States, IPR-GDF SUEZ North America is serving approximately 20% of New England's natural gas demand. It is also a leading United States electricity retailer, and a major power generator, having a capacity of 14,000MW.
About International Power
International Power plc is a leading independent electricity generating company with 70,196MW (gross) (41,550MW net) in operation and a significant pipeline of 17,249MW (gross) (6,826MW net) projects under construction as at 31 December 2010. International Power is listed on the London Stock Exchange with ticker symbol IPR. GDF SUEZ holds a 70% interest in International Power plc. Company website: www.iprplc-gdfsuez.com.
About GDF SUEZ
GDF SUEZ develops its businesses around a model based on responsible growth to take up today's major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF SUEZ employs 218,350 people worldwide and achieved revenues of euro 84.5 billion in 2010. The Group is listed on the Brussels, Luxembourg and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone and ECPI Ethical Index EMU.
Company website: www.gdfsuez.com.
SOURCE GDF SUEZ