Dynegy Mulls Selling UK Gas Storage Assets
Dynegy is in talks to sell some of its British natural gas storage assets, including the Hornsea site, which it bought last year from the BG Group. A spokesperson for the company said it was in talks with several bidders for Hornsea, the proposed Aldbrough storage facility and for a minority stake in its Rough offshore gas storage assets.
The sales come as the company is facing pressure from credit rating agencies to bolster its balance sheet. Last month, Standard & Poor's downgraded Dynegy's long-term debt ratings, placing them two rungs above "junk" status.
The spokesman denied that Dynegy was selling the assets because of pressure on its balance sheet. "We don't want people to think storage is a distressed sale. We have had a lot of interest (in the storage business)," he said. Dynegy bought the storage business from the BG Group last year for 421 million pounds ($616.1 million). Hornsea, a series of salt caverns in Yorkshire, holds about 10 percent of storage capacity but is valuable because of its faster gas delivery rates. Rough, a disused gas field in the North Sea, is the largest gas storage site in Britain and can supply the UK market with gas for 13 days.