A STATE-of-the-art power plant that forms part of the sprawling Phillips 66 site at South Killingholme is to be bought out by a Swiss energy firm in a multi-million pound deal.
Vitol Group has agreed to buy out the entire share capital of Phillips 66 Power Operations Ltd, owner of Immingham Combined Heat and Power Plant (ICHP) – one of the largest of its type in Europe – for an undisclosed sum.
The 1,220 MWe facility, where 56 people are employed, provides steam and electricity to Phillips 66's Humber Refinery, steam to the neighbouring Lindsey refinery, and electricity to the National Grid.
Expanded at a cost of £210-million in 2010, it has at least twice been subject of a review by the Houston-based oil giant, under both the ConocoPhillips and recently separated Phillips 66 business, as previously reported.
Ian Taylor, president and chief executive of Vitol Group, said: "ICHP is a high quality power plant with a highly skilled and experienced workforce. It supplies over 2 per cent of UK electricity demand and steam to the Humber and Lindsey oil refineries. We are delighted to add it to our portfolio."
The transaction is subject to customary regulatory reviews and is expected to complete by the end of June.
Brian Coffman, general manager of Phillips 66 Humber Refinery, and lead executive in the UK, said: "While a high-quality business and asset, ICHP was determined not be a core asset for Phillips 66's business strategy. ICHP is a good solid business with strong potential in the UK electricity market."
Vitol Group was founded in 1966 in Holland, growing to become a major participant in world commodity markets. It is now the world's largest independent energy trader, dealing in crude oil, oil products, LPG, LNG, natural gas, coal, electricity, agricultural products, metals and carbon emissions. Last year's revenues were $303-billion.
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