Government-owned Ontario Power Generation’s (OPG) subsidiary Atura Power has finalised a deal to buy three combined-cycle natural gas-fired plants, which were previously owned by TC Energy.

The acquisition is valued at approximately C$2.8bn ($2bn) and dependent on customary closing adjustments.

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The natural gas assets, situated in the Canadian province of Ontario, are the 900MW Napanee generating station, 683MW Halton Hills generating station and 550MW Toronto’s Portlands Energy Centre.

Atura will acquire 100% ownership in the Napanee and Halton Hills generating stations and the remaining 50% ownership of Portlands Energy Centre.

OPG president and CEO Ken Hartwick said: “Natural gas is the enabler of renewable energy and provides the flexibility required to ensure a reliable electricity system.

“OPG has decades of energy generating expertise in Ontario and this diversification of our portfolio is a natural fit.”

As per the terms of the agreement, any profits generated from the three plants will benefit Ontarians.

For this transaction, RBC Capital Markets served as the financial advisor to OPG.

The three plants will be operated by Atura Power along with the 560MW combined-cycle natural gas-fired Brighton Beach generating station in which OPG acquired the remaining 50% stake in August last year.

OPG established Atura Power to operate and manage the portfolio of natural gas assets.

In June 2019, OPG agreed to acquire US-based hydropower company Cube Hydro for an enterprise value of $1.2bn.