Shell Energy North America (US), L.P. (SENA), a subsidiary of Shell Plc, has agreed to acquire 100% of Hunlock Creek Generating LLC, which owns 169 megawatts (MW) of natural gas-fired generation capacity in Pennsylvania, while selling its interests in RISEC Holdings LLC to Constellation Energy Generation LLC for $715 million.
RISEC owns a 609-MW, two-unit combined-cycle gas turbine power plant serving the New England power market.
The transactions are part of Shell’s ongoing management of its U.S. power portfolio, the company said.
“These transactions reflect our dynamic approach to managing our trading portfolio,” Andrew Smith, Shell’s president of Trading & Supply, said.
“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,” he added.
The acquisition of Hunlock will strengthen Shell’s position in the PJM power market and secure supply and capacity offtake for SENA in the Mid-Atlantic power grid operated by PJM Interconnection, the largest wholesale electricity market and grid operator in the United States, Shell said.
Hunlock and its subsidiary own 169 MW of natural gas-fired generation capacity in Pennsylvania.
The asset will give SENA access to flexible gas-fired generation and complement its power trading activities, the company said.
Shell said the sale of RISEC will allow it to realize value from the asset on an accelerated timeline.
SENA’s earlier acquisition of RISEC provided continued access to the plant’s capacity and associated trading opportunities, allowing the company to generate value through its asset-backed trading portfolio, Shell said.
The sale will bring forward returns that Shell had expected to generate through longer-term ownership of the asset, resulting in a significant gain on the transaction, the company said.
Both transactions are subject to regulatory approvals and are expected to close in the first quarter of 2027.
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