Banpu Public Company Limited (BANPU) pushes into the U.S market by acquiring all equity interest in Temple Generation Intermediate Holdings II, LLC., which owns Temple I natural gas power plant in Temple, Texas. The transaction is reported to be valued at $430 million and is expected to close in the fourth quarter of 2021 subject to customary conditions.
The Texas-based power plant is reported to be one of the cleanest natural-gas-fueled power plants in the U.S. Entered into operations in 2014, the plant has advanced emission-control technology and its strategic location allows facilitation of providing power to 750,000 households across Texas.
BKV Corp. (BKV) a subsidiary of Banpu PCL., headquartered in Denver, Colorado will own and operate the facility. BKV operates in the natural gas exploration and production business in the North American market with the goal of positioning itself as a long-term sustainable energy player in the industry. The company is reported to be a top-20 natural gas producer in the U.S. Since its inception in 2015 through a series of acquisitions the company has made a strong presence in the industry with assets in Pennsylvania and North Texas.
Chris Kalnin, CEO of BKV in a statement said “We’re excited about this acquisition, and the strategic steps we are taking to position BKV as a leading integrated energy company with cleaner, greener energy.” He added, “By extending our natural gas business into a power business we are able to deliver unprecedented grid reliability, while also creating industry-leading ESG standards because we can directly certify our emissions footprint at each step in the value chain, from underground molecule to burner tip.”
This deal also means that BKV Barnett Shale operation which was acquired last year from Devon Energy Corp. can directly supply gas to the power plant. BKV Barnett is reported to produce 81 billion cubic feet of natural gas this year throughout May.