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Gulf Energy Development Plc (GULF), one of Thailand’s leading power producers, announced that it was making an investment of US$ 410 million (approximately 15 billion Baht) in acquiring 49% stake in an independent power producer in the United States.
“Gulf Energy USA, LLC (“Gulf USA”), GULF’s wholly owned subsidiary registered in the United States of America, and Gulf USA has entered into a Purchase and Sale Agreement with J-POWER Jackson Partners, LLC (“Jackson Partners”) to acquire a 49% equity stake in Jackson Generation, LLC (“Jackson Generation”) with an investment value of US$ 409.6 million,” Yupapin Wangviwat, GULF’s chief financial officer said in a statement to the Stock Exchange of Thailand today.
The transaction, Yupapin said, would likely be completed by December 2022.
Jackson Generation is a 1,200-megawatt gas-fired power project located in Will county, Illinois, USA that has commenced commercial operation on May 4, 2022. Jackson Generation uses state-of-the art combined-cycle gas turbine technology to provide the highest efficiency while producing the lowest greenhouse gas emissions of any natural gas-fired power plant in the United States.
It supplies electricity to the Pennsylvania-New Jersey-Maryland Interconnection (PJM), which is a regional transmission organization with the highest reliability and electricity demand in the United States, coordinating the movement of wholesale electricity in 13 states and the District of Columbia.
Currently, Jackson Generation is wholly owned by Jackson Partners under J-POWER Group, which is one of the world’s largest independent electricity producers and a joint venture partner in the Company’s gas-fired power projects under Gulf JP Group.
The investment in Jackson Generation marks the Company’s first step into the U.S. energy market and is aligned with the GULF’s commitment to enhance energy security through the provision of reliable, low-cost electricity through the energy transition towards a low-carbon society.
Furthermore, the Company will be able to recognize profits immediately since Jackson Generation has already begun commercial operation, she said.
Shares of GULF has been on the rise in anticipation of a deal and are currently trading at 56.25 Baht a share, near its all-time high (57.25 Baht was its all-time high).