TotalEnergies Nears Deal to Buy Texas Gas Power Plants
(Bloomberg) -- TotalEnergies SE is nearing a deal to buy a fleet of natural gas-fired power plants in Texas as it looks to expand in the US market, according to people familiar with the matter.
The 2.3-gigawatt portfolio is owned by independent power producer TexGen Power LLC and provides capacity equivalent to more than two nuclear reactors. That’s enough to serve nearly half a million homes on the hottest days in the US state, based on figures from the Texas grid operator.
A transaction could be announced as soon as next week, said the people, who asked not to be identified as the information is private. While talks are advanced, they could still be delayed or fall apart, the people said. If completed, the deal could be worth several hundred million dollars, according to some of the people.
TotalEnergies, based near Paris, declined to comment on “market rumors,” while adding that the company is “interested in acquiring gas-fired power plants to complement its renewable assets in the US” and that’s currently in “discussions with several potential sellers on this subject.”
TexGen didn’t immediately respond to requests for comment.
TotalEnergies has pursued gas plants to complement its growing fleet of wind and solar farms that provide more sporadic generation. Chief Executive Officer Patrick Pouyanne said last month that the company might make such an acquisition in Texas. The French oil major is aiming to reach 100 gigawatts of renewable power globally by 2030, up from 20.2 gigawatts at the end of the third quarter.
Gas plants have become more valuable in the last couple of years amid supply issues, the rise of intermittent wind and solar generation and higher power prices in key markets like Texas. Total, which has been acquiring gas-fired plants in France, Belgium and Spain, plans to invest about $4 billion a year on power generation on top of expanding oil and gas production.
In Texas, many generators are reaping record revenues, or close to it, after the state grid operator pushed through reforms to help avoid a repeat of widespread blackouts in a deadly 2021 winter storm.
A critical driver of those reforms has been boosting profits at thermal plants — those running on nuclear, coal and gas — and to create incentives for new generation. Developers have been reluctant to pour billions of dollars into projects because of uncertainty about ongoing reforms and concerns that the flood of solar and battery facilities will curb power prices.
The purchase of TexGen plants would complement TotalEnergies’ recent foray in the US clean power market. The French company had a gross installed capacity of 6.2 gigawatts of solar and wind power in North America and a further 3 gigawatts in construction on the continent at the end of the third quarter, thanks to recent acquisitions such as a 50% stake in Clearway Energy Group.
Last month, the French energy giant started commercial operations at a 380-megawatt solar farm located south of Houston, which the company said produces enough green electricity to cover the equivalent consumption of 70,000 homes.
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More utilities news

EIB to Support EU Wind Sector With €5 Billion in Bank Guarantees
Dec 02, 2023
South Korea’s Exports Pick Up Momentum as Chips Bounce Back
Dec 01, 2023
Origin Rejects Brookfield’s Plan B as Takeover Bid Teeters
Nov 30, 2023
Car Dealers Press Biden to Ease US Electric Vehicle Mandates
Nov 28, 2023
EDF is Selling Europe’s First Green Bond For Nuclear Energy
Nov 28, 2023
Mozambique Approves $80 Billion Energy Transition Strategy
Nov 27, 2023
South Africa’s Eskom Reduces Power Cuts as Reserves Restored
Nov 26, 2023
Sunak Will Pledge UK Support for New Climate Damage Fund at COP28
Nov 25, 2023
Trader Error Causes Huge Plunge in Finnish Power Prices
Nov 23, 2023
BNP Paribas Cracks Down on Mining Clients Exposed to Coal
Nov 23, 2023
COP28 presents a strong opportunity for Nabors
Dec 05, 2023
COP28 showing the importance of collaboration
Dec 04, 2023
COP28 to help accelerate the energy transition
Dec 04, 2023
COP28 sees the launch of the Global African Hydrogen Summit
Dec 01, 2023
Proserv delivering predictability to operations through asset intelligence solutions
Nov 29, 2023
The trillion-dollar opportunities on the road to net zero
Aug 16, 2023
Unlocking growth opportunities in sustainable finance
Jul 12, 2023
Decoding the trends shaping the future of energy
Jun 14, 2023
Exploring ESG’s critical role in the journey to net zero
May 18, 2023
Clearing the air on carbon markets in the Middle East
Apr 26, 2023Partner content

IT/OT convergence: balancing agility and reliability

Technologies that can help the oil and gas industry decarbonise

World-class energy management systems can shape a sustainable future

Automation is the key to LNG present and the future scenario for hydrogen
