Tenaska closes $780m financing for natural gas-fired power plant development in US

20 April 2016 (Last Updated April 20th, 2016 18:30)

US-based energy company Tenaska has closed $780m in financing for the Tenaska Westmoreland generating station in Pennsylvania.

US-based energy company Tenaska has closed $780m in financing for the Tenaska Westmoreland generating station in Pennsylvania.

The 925MW natural gas-fuelled power plant will be built, owned, and operated by Tenaska Pennsylvania Partners; Black & Veatch is the engineering, procurement and construction (EPC) contractor for the project; and Mitsubishi Hitachi Power Systems Americas (MHPSA) has been contracted to supply two M501J gas turbines, each rated at 327MW.

President and CEO of the MHPSA Paul Browning said: "The J-series turbine provides a unique combination of proven operating experience and world class output, efficiency, and reliability. In commercial operation since 2011, our best-in-class turbine provides a combined cycle efficiency approaching 62%, and proven reliability in excess of 99%.

"No other gas turbine in this 300MW+ size range has even a single hour of commercial operating experience."

MUFG Union Bank, BNP Paribas, Citigroup Global Markets, and the Industrial and Commercial Bank of China led the bank group for the financing.

"In commercial operation since 2011, our best-in-class turbine provides a combined cycle efficiency approaching 62%, and proven reliability in excess of 99%."

Tenaska development group president Greg Kelly said: "Achieving financial closing for Tenaska Westmoreland illustrates our ability to develop and advance market-driven power projects.

"We are pleased to reach this milestone and look forward to the next phase of the project."

Construction on the natural gas-fired facility began earlier this year, with commercial operation targeted for 2018. Electricity generated at the project will be enough to serve more than 925,000 homes.

Of the 7,000MW of power generation Tenaska and its affiliates manage, the Westmoreland plant is said to help set a new cost of electricity (COE) standard for the PJM region. Since 1987, Tenaska has raised nearly $14.4bn in capital through bank facilities, capital market transactions, corporate facilities and equity for the development of 10,000MW of natural gas-fuelled and renewable power projects.

The company currently has 2,500MW in pre-financing development.