Dynegy sells remaining UK natural gas storage business to Centrica
14 Nov 2002
Dynegy today announced that it has sold its remaining Dynegy Storage assets in the United Kingdom to Centrica.
Under the terms of the purchase agreement, a subsidiary of Centrica paid approximately $500 million for the subsidiaries that own Rough, an offshore partially depleted natural gas field in the North Sea, and Easington, a natural gas processing terminal located on the East Yorkshire coast.
According to a statement, Rough is a provider of natural gas storage in the UK and is used by approximately half of the country's natural gas shippers. The company can reportedly deliver 1.5 billion cubic feet per day and has a total customer storage capacity of 100 billion cubic feet of natural gas.
The Easington terminal processes Rough and third-party natural gas streams for delivery into the UK natural gas transportation network. Centrica will employ substantially all of Dynegy Storage's employees.
The sale is said to be consistent with Dynegy's previously announced plans to execute a sale or joint venture transaction involving its UK gas storage assets in connection with its ongoing capital and liquidity plan.
