LS Power, an energy owner-developer based in New York, has initiated the sale of a significant portfolio of natural gas-fired plants in the US, reported Bloomberg, citing people familiar with the matter.

These facilities provide approximately 5GW of power to the largest grid in the US, managed by PJM Interconnection.

The portfolio, known as Granite Energy, is a substantial part of the 13-state grid's infrastructure.

The sale process, which began earlier this year, is currently private, the undisclosed sources said.

Electricity generated from the portfolio is enough to supply four million people.

Based on recent plant purchases and earnings estimates, one person estimated that the deal may fetch around $2bn, according to the report.

This appreciation is due to the increasing demand for power and the improving outlook for profitability in the sector.

Despite the potential sale, LS Power has not publicly commented on the status of the transaction, and there is no guarantee that the sale will be completed.

In January of this year, LS Power entered into an agreement to purchase the Hunterstown plant in Gettysburg, Pennsylvania. This deal is expected to close in the second quarter of 2024.

In May 2023, the company expanded its presence in Texas by agreeing to acquire more than 2.1GW of natural gas generation capacity in the ERCOT North region.

This acquisition included two baseload combined cycle blocks with 1.2GW of capacity in Jack County, a 280MW combined cycle plant in Johnson County and four peaking units with a total of 568MW of capacity in Palo Pinto County.

LS Power operates a 16GW gas-fired generation fleet, which is complemented by wind, hydro and solar power, as well as battery energy storage and other energy transition technologies.