As part of an agreement between the Royal Dutch/Shell Group and Bechtel Enterprises, Shell is to transfer the majority of the natural gas pipeline, storage and power generation assets of its Coral Energy affiliate in the USA to InterGen. InterGen is a joint venture between Shell and Bechtel.
The deal involves transferring 6400 km of gas pipeline in Texas, the West Clear Lake Storage Facility – a natural gas storage reservoir – and Coral’s interest amounting to over 200 MW in three power plants, one in operation and two under construction. As a result of this transfer of assets, Shell will own 68 per cent of the shares in InterGen and Bechtel will hold the remaining 32 per cent.
For Coral Energy, alignment with an expanding InterGen power generation portfolio will support its growing gas and power marketing and trading business.
