The BEC comprises a 512MW gas-fired power generation facility located adjacent to MIC’s International-Matex Tank Terminals (IMTT) operations in Bayonne, New Jersey as well as a 7-mile long transmission cable connecting the plant to the Consolidated Edison Gowanus substation.
The transaction, which is subject to customary regulatory approvals, is planned to be completed in the first half of 2015.
Power generated from the facility will be used to meet the electricity demand in the New York City market.
MIC anticipates BEC to generate approximately $62m of earnings before interest, taxes, depreciation and amortization (EBITDA) on an annualized basis.
The facility features eight Rolls Royce natural gas fueled turbines, each with a capacity of 64MW.
MIC chief executive officer James Hooke said: "BEC is a platform for the future deployment of capital for MIC, and we believe will have operating synergies with IMTT and our other CP&E businesses.
"The BEC acquisition, combined with our December acquisition of an additional stake in IWP, makes our CP&E segment a more substantial fourth vertical.
"The majority of the generating capacity is subject to offtake agreements with investment-grade counterparties for an average of more than 15 years.
"Including the additional development at BEC, we have a pipeline of opportunities that could see us own more than 1GW of generating capacity in the medium term."
Image: The cable route of Bayonne Energy Center which connects the substation in Brooklyn. Photo: courtesy of ABB.
