Total to acquire gas-fired combined cycle power plants in France

27 July 2018 (Last Updated July 27th, 2018 17:33)

French oil and gas company Total has signed an agreement to acquire two gas-fired combined cycle power plants (CCGT) in the North and East of France from KKR-Energas.

Total has signed an agreement to acquire two gas-fired combined cycle power (CCGT) plants in north and east France from KKR-Energas.

The two CCGT plants have a capacity to generate 825MW of electricity.

Financial details of the deal have not been divulged by the two companies and completion of the transaction is subject to approval of the relevant authorities.

Total Gas, Renewables and Power president Philippe Sauquet said: “This acquisition allows Total to continue its integration along the gas and electricity value chain from production to marketing.

“With the addition of two gas plants acquired from KKR-Energas and a growing portfolio of renewable power, the group will have the capacity to generate over one-third of the cumulated consumption of its B2C and B2B customers.

“The group will have the capacity to generate over one-third of the cumulated consumption of its B2C and B2B customers.”

“Gas-fired power generation sources are an ideal complement to intermittent renewable sources of electricity. These flexible power plants enable the group to optimise the cost of electricity supply to its customers.”

Earlier this month, Total acquired a 73% stake in the French electric utility company Direct Energie for €1.4bn.

At the time of acquiring stake in the French utility, Total chairman and CEO Patrick Pouyanné said: “This operation allows us to accelerate our integration downstream along the full gas and power value chain and to reach critical mass in the French and Belgium markets where we are growing fast.”

Total also owns two power plants of 400MW each in France and Belgium.

The company is also planning to develop another 400MW plant in the Brittany region.

Within the next five years, Total aims to achieve a 15% share of the business to consumer (B2C) gas and electricity supply market in France and Belgium.