BOSTON, MA, Dec. 12, 2000 (BUSINESS WIRE)The Royal Dutch/Shell Group and Bechtel Enterprises Holdings, Inc. announced the completion of the agreement to expand the scope of their InterGen joint venture.
The agreement broadens InterGen’s asset portfolio, enhances value through shareholder strengths, and aligns Shell’s energy marketing and trading worldwide with InterGen’s position as a global leader in power generation development.
As a result of the agreement the majority of the natural gas pipeline, storage and power generation assets of Shell’s Coral Energy affiliate in the United States will be transferred to InterGen. The alignment of assets will be strengthened with marketing and trading in North America, through InterGen’s ownership of a 30 percent equity interest in Coral Energy, the region’s fifth largest natural gas marketer and 19th largest power marketer.
Globally, the alignment will enable InterGen to leverage Shell’s strengths in both fuel supply and power marketing and trading. Bechtel will continue to be InterGen’s preferred provider of engineering, procurement and construction services for power generation worldwide and for onshore gas pipelines in the U.S.
By contributing these assets, Shell’s ownership in InterGen increases to 68 percent with Bechtel Enterprises owning the remaining 32 percent.
For Coral Energy, alignment with an expanding InterGen power generation portfolio will support its growing gas and power marketing and trading business. Coral will participate as part of Shell’s global trading network, working with InterGen as a business partner in the rapid expansion of its asset platform in North America.
Specific assets to be transferred from Coral to InterGen include:
- 4,000 miles of major intrastate gas pipelines in Texas. These pipeline facilities extend from South Texas near the Mexican border along the Texas Gulf Coast to the Louisiana border and north from near Houston to the East Texas producing areas.
- The West Clear Lake Storage Facility, one of the largest natural gas storage reservoirs in Texas, strategically located near the Houston Ship Channel, and leasehold interests in the Stratton Ridge storage facility.
- Coral’s interest, totaling over 200 MW, in three power plants – one in operation and two under construction.
Approximately 230 Coral employees, primarily personnel whose jobs are related to the Texas-based assets, will join InterGen.
InterGen is an international power generation firm. The company is operating or building a total of thirteen power stations representing 10,350 MW. It also has power stations in advanced development representing an additional 6,535 MW. The company has projects operating, under construction and/or in advanced development in a number of countries across the globe including the United Kingdom, the Philippines, Colombia, Mexico, China, Egypt, Brazil, Turkey, Australia and the United States. InterGen is a Shell-Bechtel venture.
For more information, visit the InterGen web site at www.intergen.com, the Shell web site at www.shell.com, and the Bechtel web site at www.bechtel.com.