Dallas,Texas based Vistra Energy has announced the $350 million purchase of a 1,054 MW combined cycle, combustion turbine power plant in Odessa, Texas.
Vistra, parent company for TXU Energy and Luminant made the purchase from a subsidiary of Koch Ag and Energy Solutions LLC.
Curt Morgan, Vistra Energy’s CEO said the asset purchase was made with cash on hand and will offer the company access to deeply discounted gas supply from the Permian Basin. He said the supply will improve the economics of the Odessa plant and other existing West Texas power plants.
“The Odessa plant is an efficient, well-maintained asset that will provide critical flexible generation capabilities to Luminant’s ERCOT portfolio,” added Morgan. “Perhaps even more important, the Odessa plant brings geographic diversity to the Luminant fleet, as it is ideally situated in West Texas to capture the current natural gas price advantage in the Permian Basin.”
The purchase of the 16-year old plant will also allow the company to conduct routine replacement of parts in gas turbines during scheduled outages in 2019 and 2020. It should also result in a decrease in the frequency of scheduled routine maintenance.