Dynegy Inc has completed the previously announced acquisition of BG Storage Limited (BGSL) and its natural gas storage facilities and related assets in the United Kingdom. The transaction has been approved by The Gas and Electricity Markets Authority and The Department of Trade and Industry and has been cleared by the Competition Minister after advice from the Director General of Fair Trading in the UK. Dynegy Europe Ltd and BG Group plc originally announced the signing of a definite agreement on this transaction July 16, 2001.
Acquisition of BGSL's 30 wells with five offshore platforms, nine salt caverns, approximately 19 miles of pipelines, and an onshore natural gas processing terminal establishes the cornerstone of Dynegy's European physical energy convergence presence. BGSL's 260 employees will remain employed under its new name of Dynegy Storage Ltd.
As part of this transaction, Dynegy also acquired the Easington natural gas processing terminal. The facility processes natural gas streams and delivers into the UK natural gas transportation network.
Under terms of the purchase agreement, Dynegy paid about $600 million (421 million pounds) for BGSL and its assets. Dynegy used a combination of cash on hand and short-term borrowings to complete the purchase.