Osaka Gas has agreed to buy 100% of the 125MW Michigan Power Limited Partnership it said on Tuesday (10 April).
The Japanese gas utility said its wholly-owned subsidiary Osaka Gas USA will buy the gas-fired power plant from Wolverine Power Holdings, held by Rockland Capital among others.
The purchase amount was below JPY 20bn (USD 186.7m) according to an Osaka Gas spokesperson. He declined to say how the latest deal will be financed.
It will assume control of operations after receiving approval from the local authorities.
The plant is located in Ludington, Michigan.
Operating since October 1995, the gas-fired cogeneration facility provides electricity local utility Consumers Energy under a power purchase agreement. It also sells steam to a neighboring calcium chloride manufacturing plant on a long-term basis.
The move is the latest of Osaka Gas’s attempt to advance into overseas energy business activities in line with its mid-term business plan released in March, under which the USA is positioned as one of its strategic areas along with Asia.
In March last year, Osaka Gas agreed to buy interests in two US gas-fired power plants. These were: a 20% equity stake in the 725MW Shore Power Plant in New Jersey and 50% stake in the 1,050MW Fairview Power Plant in Pennsylvania.
The company plans to spend JPY 196bn on both domestic and overseas energy-related activities in the current business year to end March 2019. That is a 17% YoY rise on estimated investment in 2017-18.