Boston, MA - December 12, 2000
The Royal Dutch/Shell Group and Bechtel Enterprises Holdings, Inc. announced the completion of the agreement to expand the scope of their InterGen joint venture. The agreement broadens InterGen's asset portfolio, enhances value through shareholder strengths, and aligns Shell's energy marketing and trading worldwide with InterGen's position as a global leader in power generation development.
Shell And Bechtel Enterprises Complete Joint Venture Aligning Power Generation
As a result of the agreement the majority of the natural gas pipeline, storage, and power generation assets of Shell's Coral Energy affiliate in the United States will be transferred to InterGen. The alignment of assets will be strengthened with marketing and trading in North America, through InterGen's ownership of a 30 percent equity interest in Coral Energy, the region's fifth largest natural gas marketer and 19th largest power marketer. Globally, the alignment will enable InterGen to leverage Shell's strengths in both fuel supply and power marketing and trading. Bechtel will continue to be InterGen's preferred provider of engineering, procurement, and construction services for power generation worldwide and for onshore gas pipelines in the U.S. By contributing these assets, Shell's ownership in InterGen increases to 68 percent with Bechtel Enterprises owning the remaining 32 percent.
For Coral Energy, alignment with an expanding InterGen power generation portfolio will support its growing gas and power marketing and trading business. Coral will participate as part of Shell's global trading network, working with InterGen as a business partner in the rapid expansion of its asset platform in North America.