U.S. utilities will spend big in Asia<\/p>\n
MELBOURNE (Reuter): Two big U.S. power companies said on
\nMonday they would continue investing billions of dollars in Asian
\nenergy assets to help drive profits at home.<\/p>\n
Michigan-based CMS Energy Corp and Minnesota-based NRG Energy
\nInc, which last month combined to buy control of Australia's
\nrichest power station and coal mine, said they were eying other
\nmajor investments in Australia and Southeast Asia.<\/p>\n
"Both companies here are very active in the Asian region,"
\nsaid David Weaver, of CMS Asia, after settling the A$4.75-billion
\n(US$3.7-billion) Australian purchase.<\/p>\n
"This is not the first pot shot at a project. This is part of
\na very clear strategy of building a business across the region,
\nnot just picking up the odd project..."<\/p>\n
Weaver and the U.S.-based chiefs of CMS and NRG were in
\nMelbourne to present the Victoria state government a cheque for
\nthe Loy Yang A power station and coal mine.<\/p>\n
The sale of the 2,000-megawatt plant, the most efficient in
\nAustralia, stands as the nation's single biggest privatization.<\/p>\n
CMS, which took 50 percent of Loy Yang, and NRG, which took 25
\npercent, said on Monday they would be natural partners for other
\nmajor investments in Australia or elsewhere in the region.<\/p>\n
"There will be, before too long, another large project where
\nwe would work together, whether that be here or in Southeast
\nAsia," said NRG's Asia-Pacific chief, David Scaysbrook.<\/p>\n
"Both companies are actively interested in pursuing
\nprivatizations...," he told a joint media briefing.<\/p>\n
He cited Indonesia, saying it was looking to sell a part or
\nall of its electricity generating system, as well as possible
\nsales of state-owned assets in the Philippines and Thailand.<\/p>\n
CMS aims to build its offshore asset base to 40 percent of the
\ngroup, with Southeast Asia the likely home for most of this
\ncapital, said CMS chief operating officer Vic Fryling.<\/p>\n
CMS now has 20 percent of its US$9 billion asset base in
\noffshore investments and is active in 10 Asian countries.<\/p>\n
It runs India's only independent power station, a gas-fired
\nplant in Andhra Pradesh state. It also runs three plants in the
\nPhilippines and is developing a gas business there, Weaver said.<\/p>\n
CMS is an integrated energy company that spreads its
\ninvestment from gas exploration to electricity generation. NRG
\nfocuses mainly on electricity generation.<\/p>\n
NRG is soon to close a deal on building and operating a joint
\nventure coal-fired power station in West Java, Indonesia.
\nThe deal, to be closed in four to six weeks, will be followed by
\n"our second deal in Asia in the next few months", said NRG's
\nScaysbrook. He said the investment involved gas-fired power
\ngeneration but declined to say more.<\/p>\n
NRG's parent, Northern States Power Co, is dependent on NRG
\nfor earnings growth and, in turn, NRG is looking to Asia to help
\ndeliver, said NRG chief executive David Paterson.<\/p>",
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