Shell Energy North America (SENA), a subsidiary of Shell, is buying full ownership of Hunlock Creek Generating LLC, a 169-megawatt natural gas-fired power plant in Pennsylvania, while selling its interest in a separate New England plant to Constellation Energy for $715 million.
SENA disclosed both transactions as part of its ongoing management of its US power portfolio. Andrew Smith, Shell's President of Trading & Supply, said the moves reflect "our dynamic approach to managing our trading portfolio."
The Hunlock Creek purchase
SENA is acquiring 100% of the equity in Hunlock Creek Generating LLC, which owns 169 MW of natural gas-fired generation capacity in Pennsylvania. The portfolio includes a two-unit, 125-MW combined-cycle power plant and a 44-MW simple-cycle peaking plant. Hunlock is currently owned by Riverview Power Holdings LLC, an indirect subsidiary of Castleton Commodities International LLC.
The acquisition secures supply and capacity offtake for SENA in the Mid-Atlantic grid operated by PJM Interconnection, which manages electricity across 13 US states and the District of Columbia and serves more than 65 million people. Shell said the deal gives SENA access to flexible gas-fired generation in the PJM power market and is projected to generate returns above the investment requirements Shell set out for its power business at its 2025 Capital Markets Day.
The RISEC sale
SENA is selling its interest in RISEC Holdings, LLC to Constellation Energy Generation, LLC for $715 million. RISEC owns a 609-MW, two-unit combined cycle gas turbine plant that serves the New England power market. We reported that Constellation Energy is buying Shell's stake in the New England gas plant for $715 million.
SENA has held an energy conversion agreement covering RISEC's full electricity output since 2019, and that agreement will end once the sale closes. Shell said the sale lets SENA bring forward the return it had expected from longer-term ownership of RISEC through a gain on the sale.
Terms and timing
| Transaction | Asset | Capacity | Market |
|---|---|---|---|
| Acquisition | Hunlock Creek Generating LLC | 169 MW gas-fired | PJM (Pennsylvania) |
| Sale | RISEC Holdings, LLC | 609 MW combined cycle | New England |
Both transactions are subject to regulatory approvals and are expected to close in the first quarter of 2027.
Background
SENA, headquartered in Houston, Texas, with regional hubs across North America, has operated in energy markets for more than 25 years and owns gas-fired generation in some of the largest power markets in the United States. Shell said SENA's focus is on power markets where it can use its strengths in trading and optimization, backed by growing access to battery energy storage systems and flexible power plants.
