GS EPS Buys 10% Stake in New Jersey-based Linden Power Complex

Source Press
Company GS GroupAres Management CorporationOaktree Capital Management, L.P. 
Tags Asset Deals, Deals, Power
Date August 30, 2018

( GS EPS Co., a LNG-based power generating unit of South Korea’s GS Group, agreed to buy a 10-percent equity stake in a gas-fueled power plant in New Jersey to become Korea’s first private name to venture into the U.S. electricity market. 

The Korean company said Thursday it signed a deal with American asset managers Ares EIF Management and Oaktree Capital Management to assume share holdings of a 10 percent stake in Linden Cogeneration Complex, which operates a 972 megawatt (MW) natural gas-fired thermal power cogeneration facility in northern New Jersey. Korea’s Mirae Asset Daewoo Co. and Hana Alternative Asset Management Co. also joined as co-investors. 

The company did not disclose the financial terms of the deal. 

The stake purchase is expected to help the Korean power company learn the ins and outs of the U.S. power market before it branches out into fields such as renewable energy and combined cycle operations in the country. 

While the Linden facility is located in New Jersey, its electricity grid is connected to its bigger neighbor New York, which gets 13 percent of its power from Linden. It is considered one of the most efficient power generators in the country for its ability to produce energy reliably at a minimum cost. Part of the electricity and steam generated from the facility is also supplied exclusively to the Bayway refinery of Phillips 66, the largest refining firm on the east coast. 

Joining GS EPS in the latest Linden deal, the two Korean asset management companies, Mirae Asset Daewoo and Hana Alternative Asset Management, are expected to further diversify their infrastructure investment portfolios in the U.S. market. 

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd