Scottish and Southern Energy acquires Dynegy Hornsea
1 Oct 2002
Scottish and Southern Energy plc (SSE) has purchased Dynegy Hornsea Ltd from Dynegy Inc for a total cash consideration of £129 million plus working capital of £1.4 million.
Dynegy Hornsea Ltd comprises the Hornsea gas storage facility on the east coast of Yorkshire, plus the development rights to the adjacent Aldborough site.
The Hornsea facility has nine cavities with a total storage capacity of around 325 million cubic metres, and could be expanded further. It operates as a tool for meeting peak demand for gas and is capable of exporting around 18 million cubic metres a day and importing around two million cubic metres a day.
The Aldborough site is said to have received planning permission for the creation of a further six gas storage cavities with a capacity of around 170 million cubic metres. Planning consents are in place and are valid until 2005.
The acquisition is expected to be earnings enhancing, pre and post goodwill, in the first year.
