By OGJ editors
HOUSTON, Dec. 10 -- El Paso Corp. business unit, El Paso Merchant Energy, Monday reported entering into an agreement to sell its 40% interest in the 700 Mw Samalayuca II power project to an affiliate of GE Structured Finance, another project partner.
The Samalayuca plant is near Ciudad Juarez, Mexico, and provides electricity to the Comision Federal de Electricidad for distribution to Chihuahua state. The plant is comprised of three natural gas-fired combined-cycle units.
The transaction, which is subject to customary approvals, is expected to close by yearend.
"This sale is part of El Paso's initiative to sell noncore assets, pay down debt, and further strengthen the company's balance sheet," said El Paso Corp.
Completion of this sale will increase the Houston-based energy firm's announced or completed assets sales to more than $3.7 billion this year, the company said.