Texaco and Partners Close Purchase of South Korean Power Plants

WHITE PLAINS, N.Y.à‚–Texaco has announced the financial closing and purchase by LG-Power of the Anyang and Buchon power plants and district heating facilities in Gyonggi Province near Seoul, South Korea from state-owned Korea Electric Power Corp. (KEPCO) and Korea District Heating Corp. (KDHC).

Ownership of the two liquefied natural gas-fueled plants and district heating facilities will transfer from KEPCO and KDHC to operating company LG-Power on September 1. LG-Power is a joint venture of Texaco (25 percent); LG-Caltex Oil Corp (26 percent); LG-Caltex Gas (24.5 percent) and KukDong City Gas (24.5 percent).

“The Anyang and Buchon plants are significant additions to Texaco’s power portfolio and the acquisition marks an important step in the implementation of our strategy to become a global energy provider,” said James Houck, Texaco Power and Gasification president. “We look forward to providing power and heat to consumers in South Korea and to playing an on-going role in the privatization of the country’s power industry.”

Power from Anyang and Buchon, which have a combined output of 951 MW and have been in operation since 1993, will be purchased by KEPCO under an 18-year power purchase agreement signed June 22, 2000. The plants’ combined 1,077 giga-calories per hour heat output will be sold to more than 170,000 households in the region. Fuel will be supplied to the plant under a six-year contract with Korea Gas Co.

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