Singapore-based trading company Trafigura, with its joint venture (JV) partner the Frontier Group of Companies, has acquired the Mountain Creek power plant in Texas, US.
The financial terms of the deal have not been disclosed.
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The strategic move represents Trafigura’s inaugural step into the power generation sector and mirrors a larger trend of trading firms investing in local electricity markets.
The 1,500-acre site, which includes existing grid infrastructure, provides a platform for future development opportunities.
Situated in the Electric Reliability Council of Texas (ERCOT) market near Dallas, the 808MW Mountain Creek steam turbine gas-fired facility plays a crucial role in supplying electricity during peak demand periods.
Trafigura gas, power and renewables global head Richard Holtum stated: “This strategic asset will support our growing gas and power business in the US and will continue to provide a flexible source of energy to the fast-growing Texas market.
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By GlobalData“There is also significant future development potential at the site for projects that contribute to regional energy security and low carbon power solutions, such as solar power, battery energy storage solutions or additional flexible power production.”
The acquisition is part of Trafigura’s plan to strengthen its gas and power business in North America as well as expand its product offering.
Texas’ ageing power grid has come under considerable strain due to record-breaking summer heat waves, leading to heightened electricity demand.
This has led to highly volatile prices, benefiting traders but putting more pressure on gas-fired power plants and batteries to maintain power flow at night or during low wind periods.
