- These assets represent the only available entry for the activities of supply and distribution of gas in the island, which gives Gas Natural Group a relevant competitive and strategic advantage.
- In June Gas Natural SDG signed with ENRON an acquisition contract that gave it preferential rights and which has turned out to be key to win the award.
July 31, 2003, Barcelona, Spain – Today the Judge of New York’s South District Court in charge of the matters relating to ENRON’s bankruptcy held the auction of ENRON´s assets in Ecoeléctrica de Puerto Rico, which were finally awarded to Gas Natural SDG, and which consist of 47.5% of Ecoléctrica as well as the management contract of the company.
This auction was part of the process of asset sales and restructuring of ENRON, that has been assisted by the investment bank The Blackstone Group.
The auction highlighted the importance of these assets for the development of gas trading operations in the Atlantic basin as well as gas downstream and electricity businesses, which provide an important competitive advantage in the supply of natural gas in Puerto Rico. Gas Natural SDG has reached an agreement with Repsol YPF to carry out the joint supply of gas in the island.
Gas Natural SDG, having been the candidate selected by ENRON on 23 June, enjoyed a decisive advantage on any other candidates, whereby its bid was finally successful.
Ecoeléctrica’s assets consist of a 540 MW CCGT and a regasification plant with a capacity of 115,000 m3, both located at Peñuelas in southern Puerto Rico, which became operational in the year 2000. Ecoeléctrica’s CCGT plant is the first gas powered generation project in Puerto Rico and represents approximately 20% of the island’s electricity production.
The regasification plant counts on a dock that admits LNG vessels with a capacity of up to 140,000 m3 as well as a storage tank of 160,000 m3. This is the single plant of its kind in Puerto Rico, thereby constituting an important strategic alternative for the supply of natural gas to the island as well as an important competitive advantage.
The award of ENRON’s participation also includes a regasification contract on an exclusive basis that provides it with a very favorable position to supply natural gas in Puerto Rico. This is a very important asset as over the next few years demand for natural gas in the island is expected to show an important growth both to cover the rising energy demand and to replace the island’s current consumption of oil-based products.
Projections for the demand show that over the next 10 years natural gas may represent over 40% of the annual fuel needs for electricity generation in order to meet the targets set by the Puerto Rican government in accordance with North American environmental laws.
This transaction will allow to maximize Gas Natural’s prominent position in the international LNG trading transactions in the Atlantic Ocean markets. Besides, this transaction represents a very important step forward in Gas Natural's international strategy.