BG Group buys Connecticut power plant

DAYVILLE, Conn., Dec. 29 (UPI) -- International gas company BG Group announced it has agreed to purchase a Connecticut power plant, its second recent buy into the New England market.

Britain-based BG Group said Thursday it reached a deal to purchase the Lake Road power plant in Dayville, Conn., for $685 million.

The deal for the 805 megawatt gas and oil combined cycle, three-unit plant must receive regulatory approval first, including from the Federal Energy Regulatory Commission.

"The acquisition of Lake Road represents an important step in the implementation of our integrated U.S. strategy," said BG North America, Caribbean and Global Liquified Natural Gas Executive Vice President and Managing Director Martin Houston, in a company statement.

BG also sees room for expanding the Lake Road plant.

In October, BG bought the 170 megawatt Dighton power plant in Massachusetts. The company is eyeing the New England area for continued growth.

New England faces possible rolling blackouts as demand potentially begins to exceed capacity.

"Lake Road and Dighton have the potential to offer BG attractive returns and will be readily integrated into our growing US gas business," Houston said.