Equinor Acquires Control of $940M Pennsylvania Power Plant from GIP
Equinor has agreed to pay $940 million for a preferred ownership interest in one of Pennsylvania’s largest natural gas-fired power plants, expanding its U.S. electricity business as data centers and industrial development increase demand across the PJM market.
The Norwegian energy company will acquire 87.71% of the Class A shares in the 1,483-megawatt Lackawanna Energy Center from funds managed by Global Infrastructure Partners, which is part of BlackRock. The purchase price could be reduced at closing, according to Equinor.
Invenergy AMPCI Thermal Power will retain the remaining Class A shares and all Class B shares. Invenergy, which developed the facility, will continue managing and operating it. The Class A shares carry preferential dividend rights, providing Equinor with upfront preferred cash flow and greater visibility into long-term distributions.
Lackawanna began commercial operations in January 2019 in Jessup, Pennsylvania. Its three combined-cycle units generate nearly nine terawatt-hours of electricity annually.
“This acquisition gives Equinor further access to the largest power market in the U.S. and is located close to our significant Appalachian gas position,” said Helge Haugane, executive vice president for Power.
PJM coordinates electricity across 13 states and the District of Columbia, serving about 67 million people. Its latest forecast projects summer peak demand will increase approximately 3.6% annually to about 222 gigawatts by 2036, led primarily by data centers and other large loads.
The acquisition also places Equinor’s power investment near its Appalachian Basin natural gas holdings, which produce more than 1.7 billion cubic feet daily.
Equinor and Invenergy plan to explore additional opportunities in PJM, potentially connecting the Norwegian company’s gas supply, trading and power-generation capabilities.
The transaction remains subject to regulatory approvals. Equinor did not provide an expected closing date.
Pictured: Lackawanna Energy Center
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