Engie sheds assets in North America and Asia

French LNG player and power utility Engie closed the sale of assets in the United States and Asia, as it continues to pursue its transformation plan. 

The company said that since the launch of the portfolio rotation program in February 2016, it has signed asset disposals amounting to 50 percent of the €15 billion (Approx: US$15.9 billion) target over the 2016-2018 period, of which €6.9 billion of transactions closed to date.

In the United States, Engie has closed the sale of 8.7 GW of thermal assets, 8.0 GW gas-fired and 0.7 GW coal-fired, to a joint venture formed by Dynegy and ECP, for about $3.3 billion. This resulted in Engie’s net debt reduction of €3 billion.

Engie’s North American activities include development of power generation, energy efficiency services, retail electricity sales, small scale LNG and LNG infrastructures, including its participation in the Cameron LNG liquefaction project currently under construction.

The company also concluded sales of interests in Meenakshi and Paiton, two coal-fired power plants located in India and in Indonesia, respectively, representing 3 GWof generation capacity, in September 2016 and December 2016 respectively.

These sales resulted in the reduction of €1.5 billion of the company’s consolidated net debt.

The company’s 40.5 percent stake in the 2 GW Paiton power plant located in Indonesia has been sold to Nebras Power and a combination of some of the existing Paiton shareholder.

The entire shareholding in Meenakshi power plant located in India has been sold to India Power Corporation Limited, Engie said.

1 EUR = 1.06543 USD