Astoria Energy II 575 MW gas-fired power plant begins commercial operation in NY

Source: GDF Suez

GDF SUEZ and International Power (70% owned by GDF SUEZ) are pleased to announce that the Astoria Energy II plant in New York City commenced commercial operation on July 1. The 575MW gas-fired project, in which IPR-GDF SUEZ North America has a 30% equity interest, will sell its entire output to the New York Power Authority under a 20-year contract. The total project cost of Astoria Energy II is approximately US$1.3 billion (euro 0.9 billion).

New York, along with the New England, Texas and Mid-Atlantic states, is one of the four key U.S. markets for IPR-GDF SUEZ North America.

Gerard Mestrallet, Chairman and CEO of GDF SUEZ, commented, "Developing an enhanced and strategic presence in the high-value New York City market has been a key objective for us. When we acquired our initial stake in Astoria Energy, the expansion of the project on the adjoining site provided an attractive option to add further value. The technology, location, and long-term supply contracts of the Astoria Energy facilities are all solid assets, and are well positioned to meet a strong demand for environmentally sound, in-city power production."

Philip Cox, CEO of International Power, said, "New York is an attractive market and this project adds to our existing interest in the 575MW Astoria Energy I facility. Backed by a long-term offtake contract with one of the largest state public power organizations in the United States, Astoria Energy II further strengthens our North America portfolio."

This project is funded by debt and equity in a 72:28 debt-to-equity ratio. IPR-GDF SUEZ North America's equity interest in the project amounts to US$109 million (euro 75 million) for its 30% share.

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