PRINT THIS PAGE GIP, Fortistar to acquire Channelview facility for $500m11/07/2008. Source: AltAssets. 
Infrastructure-focused private equity firm Global Infrastructure Partners, together with independent power generation company Fortistar, has agreed to acquire the Channelview co-generation facility in the Houston, Texas area from Reliant Energy for $500m plus certain adjustments. The US Bankruptcy Court for the District of Delaware has now approved the agreement. The Channelview facility is a nominal 830 MW, natural gas-fired cogeneration facility located in Channelview, Texas.
The plant has been fully operational since 2002 and sells steam and a portion of its electric output under long-term contracts with Equistar Chemicals, a subsidiary of polymers, petrochemicals and fuels company LyondellBasell.
Adebayo Ogunlesi, GIP's managing partner, said, 'Channelview's long-term value as one of the cleanest and most efficient steam and electric power producers in Texas makes this an attractive acquisition for GIP. We look forward to working with Fortistar to maximise Channelview's reliability and energy production efficiency for the benefit of both its customers and investors.'
GIP closed its inaugural fund in May of this year on $5.64bn. The firm invests in infrastructure assets, targeting investments in single assets, portfolios of assets, as well as companies in the power and utilities, natural resources infrastructure, air transport infrastructure, ports, rail, water distribution and treatment and waste management sectors.
GIP recently completed the acquisition of a substantial stake in Biffa, a UK integrated waste management infrastructure business.
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