TOKYO�El Paso Energy Corp., Houston, completed its purchase of 50% of South Korea's Hanwha Energy Corp. with the payment of $100 million to the company. Hanwha Energy owns a 1,650-Mw power plant at Inchon, west of the capital Seoul.
Hanwha says that, in future, it will operate the plant in conjunction with El Paso. It also announced plans to boost its power generation capacity to 1,800 Mw from the current 1,650 Mw.
El Paso Energy International Pres. John Hushon recently said the transaction would mark the largest foreign investment in the Korean power industry to date. The sale will also help reduce Hanwha Energy's debt-to-equity ratio to 170% from 240%.
Hanwha has already been forced to sell its refining operations to Hyundai Oil Refining Co. as part of its efforts to reduce its massive debt burden.
