Shell is buying a 169MW gas-fired power plant in Pennsylvania while selling its interest in a 609MW New England facility to Constellation Energy for $715mn, as the oil major adjusts its US electricity portfolio to support its trading business.
Shell Energy North America, the energy group’s US trading subsidiary, said on Thursday it had agreed to acquire 100 per cent of Hunlock Creek Generating, which owns gas-fired generation capacity in Pennsylvania.
At the same time, Shell will sell its interests in RISEC Holdings to Constellation Energy Generation. RISEC owns a two-unit, 609MW combined-cycle gas turbine plant serving the New England power market.
The transactions underscore Shell’s strategy of using physical power assets to strengthen its trading position while monetising investments when market conditions offer an attractive exit.
“These transactions reflect our dynamic approach to managing our trading portfolio,” said Andrew Smith, Shell’s president of trading and 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 Hunlock acquisition will give Shell additional supply and capacity offtake in the PJM Interconnection market, the largest wholesale electricity market and grid operator in the US. The Pennsylvania asset comprises a 125MW two-unit combined-cycle plant and a 44MW simple-cycle peaking plant.
Shell said the acquisition is expected to generate returns above the investment requirements for its power business set out at its 2025 Capital Markets Day.
The sale of RISEC, meanwhile, accelerates the value Shell had expected to realise from a longer-term ownership of the plant. Shell has maintained an energy conversion agreement covering the plant’s full electricity output since 2019, providing access to its capacity and associated trading opportunities. That agreement will terminate when the transaction closes.
The moves reflect a broader focus by Shell Energy North America on power markets where it can combine physical assets with trading and optimisation capabilities, including flexible power plants and battery storage.
Both transactions remain subject to regulatory approval and are expected to close in the first quarter of 2027.
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