At the conclusion of the transaction, Suez, through its subsidiary Electrabel, and Gaz de France (GDF) will each own 50% of the company. In service since 1993, the Teesside unit has eight natural gas-fired turbines and is claimed to be Europe’s largest combined-cycle gas turbine (CCGT) plant.
The GDF group said that the transaction reinforces its position in the UK where it has been present in the electricity market since 1993. With its 50% acquisition of the Teesside plant, GDF will raise its total installed electricity production capacity to 1,150MW.
In 2007, the group, through its subsidiary GDF ESS, sold 10TWh of electricity to major industrial and service sector customers in the UK. GDF is seeking to develop synergies between its UK natural gas activities, where it is present throughout the entire natural gas value chain, and its electricity sector activities.
For Suez, this acquisition reportedly offers an opportunity to utilize its skills in the field of combined-cycle gas turbines, while leveraging natural gas and electricity synergies.
