Constellation to Sell Texan Natural Gas Plant to HPDEC

3 January 2011 (Last Updated January 3rd, 2011 18:30)

Constellation Energy is to sell the Quail Run natural gas plant in west Texas, US, to High Plains Diversified Energy Corporation (HPDEC) for $185.3m. The 550MW plant had been acquired by Constellation in May 2010 as part of a two-plant agreement that included another 550MW natural gas

Constellation Energy is to sell the Quail Run natural gas plant in west Texas, US, to High Plains Diversified Energy Corporation (HPDEC) for $185.3m.

The 550MW plant had been acquired by Constellation in May 2010 as part of a two-plant agreement that included another 550MW natural gas plant near Wharton, Texas.

Constellation Energy senior vice-president Kathleen Hyle said that Quail Run is a modern, efficient, well-managed asset, but its location in ERCOT's west zone is far from Constellation's retail and wholesale customers and growth opportunities.

"The strategic value in this transaction is that it presents the potential to redeploy capital to be used for the acquisition of generation closer to our major customer centres in ERCOT and competitive markets nationwide," Hyle said.