ExxonMobil has entered into an agreement with CLP on the sale of its 60% stake in Castle Peak Power Company Limited (CAPCO) in Hong-Kong. Established in 1964, CAPCO is currently held 40% by CLP Power and 60% by ExxonMobil. It owns the 4,108 MW Castle Peak coal-fired power plant, the 2,500 MW Black Point CCGT power plant and the 300 MW Penny’s Bay oil-fired power plant in Hong Kong with a total power generation capacity of 6,908 MW. CLP Power is the operator for all three plants.
Under the terms of the agreement, CLP and China Southern Power Grid International HK (CSG HK), a wholly-owned subsidiary of China Southern Power Grid (CSG), will each acquire a 30% interest in CAPCO from ExxonMobil for HK$2bn each (US$258m). Following the completion of the transaction, CLP Power will hold 70% of CAPCO and CSG HK will own the remaining 30%. In a separate arrangement, CLP Power will also purchase ExxonMobil’s its 51% stake in Hong Kong Pumped Storage Development Company (PSDC) for HK$2bn in cash (US$258m), thus gaining full control over the company. PSDC has a contractual right to use, until 2034, 600 MW of the pumped storage capacity at Guangzhou Pumped Storage Power Station (China).
The transactions are expected to be completed in mid-2014.
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