DONG Energy is acquiring the Severn gas-fired power station project and the
engineering business Carron Engineering & Construction from Welsh Power Group.
The Severn power station, which is located in South Wales, is currently under
construction and is expected to be commissioned at the end of 2010. The power
station will have a capacity of app. 850 MW and at commissioning is expected to
be one of the most efficient gas-fired power stations in the United Kingdom.
The overall budget for construction of the power station is nearly
DKK 5 billion (including DONG Energy's purchase price).
Carron Engineering & Construction (CEC), situated in North Yorkshire in
England, provides consultancy services relating to the construction, operation
and maintenance of power plants.
“The acquisition of Severn and CEC is in line with our strategy of developing
our power production portfolio and complements our existing British wind and
gas activities” says Anders Eldrup, CEO of DONG Energy.
DONG Energy already operates two offshore wind farms in the United Kingdom, is
constructing a third and has a significant pipeline of UK offshore wind
projects. In addition, DONG Energy has considerable UK oil and gas exploration
activities, including a number of licenses in the West of Shetland area.
Furthermore, a large part of DONG Energy's share of the gas produced from the
Norwegian Ormen Lange gas field is sold in the United Kingdom.
The content of this announcement does not alter the profit outlook for the 2009
financial year or the expected capex level announced by DONG Energy on 6 March
Rothschild acted as financial adviser to DONG Energy on the acquisition.
For further information, please contact:
+45 9955 9750
+45 9955 9560
DONG Energy is one of the leading energy groups in Northern Europe. We are
headquartered in Denmark. Our business is based on procuring, producing,
distributing and trading in energy and related products in Northern Europe.
We have approximately 5,500 employees and generated more than DKK 60 billion
(approx. EUR 8.2 billion) in revenue in 2008.
For further information, see www.dongenergy.com.