Shell Signs US Power Plant Transactions in Strategic Asset Reshuffle
Shell Energy North America (US), L.P. (SENA), a subsidiary of Shell plc (Shell), has signed two transactions as part of its ongoing management of its US power portfolio:
The acquisition of 100% equity in Hunlock Creek Generating LLC (Hunlock), which owns 169 megawatts (MW) of natural gas-fired generation capacity in Pennsylvania.
The sale of interests in RISEC Holdings, LLC (RISEC) to Constellation Energy Generation, LLC for $715 million. RISEC owns a 609-MW, two-unit combined cycle gas turbine power plant that serves the New England power market.
“These transactions reflect our dynamic approach to managing our trading portfolio,” said Andrew Smith, Shell’s President of Trading & Supply. “We selectively invest in assets that strengthen our market position and create value, while remaining ready to realize value when market conditions present attractive opportunities.”
The acquisition of Hunlock strengthens Shell’s position in the PJM power market
The acquisition secures supply and capacity offtake for SENA in the Mid-Atlantic power grid operated by PJM Interconnection, the largest wholesale electricity market and grid operator in the USA.
Hunlock and its subsidiary own 169 MW of natural gas-fired generation capacity in Pennsylvania. The asset further strengthens SENA’s position in the PJM market through access to flexible gas-fired generation and reinforces Shell’s continued focus on investing in assets that complement its trading capabilities.
The sale of RISEC enables Shell to realize significant value on an accelerated timeline
SENA’s earlier acquisition of RISEC ensured continued access to the plant’s capacity and associated trading opportunities in the market, enabling SENA to deliver substantial value as part of its asset-backed trading portfolio. With this transaction, SENA will bring forward the return it expected to generate from its longer-term ownership through a significant gain on the sale.
Both transactions are subject to regulatory approvals and are expected to close in the first quarter of 2027.
