Shell acquires top-tier power company MP2 Energy
Shell Energy North America (SENA), the primary marketer of Shell’s natural gas production in North America, has signed a purchase agreement to acquire MP2 Energy LLC (MP2).
SENA manages a successful retail energy business targeting large commercial and industrial customers on the U.S. west coast. With the acquisition of MP2, SENA will be able to expand in Texas and throughout the eastern U.S., as well as gain access to MP2’s top-tier network of aggregators, brokers, and consultants.
Subject to regulatory approvals, the transaction is expected to close in the third quarter of 2017.
The acquisition would be a small one for Shell, but allows Shell to diversify its business into power and is indicative of an industry trend, as energy demand starts to shift away from traditional fossil-based energy sources to cleaner fuels, renewable technologies and electric vehicles.
Today, Shell produces more natural gas than crude oil and through its joint venture with Brazil’s Cosan is also in the renewable fuels business.
MP2 Energy is a top-tier power company that manages power plants, delivers retail power to end-use customers and masters all other aspects of the power markets like asset management, commodity hedging, solar installation and off-take, wind and distributed generation.
“We are proud to bring MP2 into the Shell Energy North America family,” said Glenn Wright, VP, SENA. “MP2 has established itself as a significant player in the large end-user electricity market, and achieved its position by combining optimally designed energy solutions and exceptional customer service.”
“As Shell continues to expand its energy focus, we will strive to bring customers ever more innovative commodity solutions, including the deployment of new energy management tools,” said Wright.
When this acquisition closes, MP2 which is also based The Woodlands, Texas, will continue to be managed by the existing MP2 management team as a wholly owned subsidiary of Shell Energy North America.
