Exelon Generation, a unit of the US energy producer Exelon Corporation, struck an agreement with France’s Engie to purchase the company’s Everett LNG import terminal in the US.
The acquisition would enable Exelon to supply fuel to Exelon’s Mystic generation station’s units 8 and 9 while they remain in operation before the planned shutdown in 2022.
Following the acquisition Exelon will continue providing LNG to gas utilities, marketers and other market participants in New England, the company said in a statement.
Transaction closure is dependent upon regulatory review by the U.S. Department of Energy for LNG import authorization and, as necessary, authorization from the U.S. Department of Justice, all expected in the fourth quarter of the year.
The Everett Marine Terminal, also known as the Distrigas Terminal, is the longest-operating LNG import facility of its kind in the United States. The facility has connections with two interstate pipeline systems, as well as a local gas utility’s distribution system.
Mystic generating station is a 2,000-megawatt natural gas- and oil-fueled power plant. Its units 7, 8 and 9 are the operating units currently, but Exelon has unveiled its plans to retire the units in June 2022.