BAKU, Azerbaijan, September 12. Shell Energy
North America, a subsidiary of Shell plc, is reshaping its US power
portfolio through two transactions that will expand its exposure to
the PJM electricity market while allowing it to realize significant
value from a power asset serving New England.
The company has agreed to acquire 100 percent of the equity in
Hunlock Creek Generating LLC, which owns 169 megawatts (MW) of
natural gas-fired generation capacity in Pennsylvania, while
separately agreeing to sell its interests in RISEC Holdings LLC to
Constellation Energy Generation LLC for $715 million.
Both transactions are subject to regulatory approvals and are
expected to close in the first quarter of 2027.
The deals illustrate Shell Energy North America's strategy of
combining physical power assets with its trading and optimization
capabilities, selectively acquiring generation capacity where it
can strengthen its position in major US electricity markets while
monetizing assets when market conditions create attractive
returns.
“These transactions reflect our dynamic approach to managing our
trading portfolio,” Andrew Smith, Shell's President of Trading &
Supply, said.
“We selectively invest in assets that strengthen our market
position and create value, while remaining ready to realize value
when market conditions present attractive opportunities,” he
added.
The transactions are expected to close in the first quarter of
2027, subject to regulatory approvals.
Expanding Shell's position in PJM
The acquisition of Hunlock is expected to strengthen Shell
Energy North America's position in PJM Interconnection, the largest
wholesale electricity market and grid operator in the US.
PJM coordinates the movement of electricity across 13 states and
the District of Columbia and serves more than 65 million people.
The market covers a major portion of the US Mid-Atlantic and
Midwest power system, making access to flexible generation capacity
strategically important for companies active in wholesale
electricity trading.
Hunlock's portfolio comprises a two-unit, 125-MW combined-cycle
power plant and a 44-MW simple-cycle peaking plant. Both facilities
are natural gas-fired, giving Shell access to generation assets
capable of responding to changing power demand and market
conditions.
The combination of baseload and peaking generation is
particularly relevant to power traders because gas-fired plants can
provide flexibility when electricity demand rises or when output
from intermittent renewable sources such as wind and solar
fluctuates.
Hunlock is currently owned by Riverview Power Holdings LLC, an
indirect subsidiary of Castleton Commodities International LLC.
Shell said the acquisition is projected to generate returns
exceeding the investment requirements it set for its power business
at its 2025 Capital Markets Day.
The transaction also fits into Shell Energy North America's
broader strategy of focusing on power markets where the company can
leverage its trading, optimization and risk-management
capabilities, supported by access to flexible power plants and
battery energy storage.
$715 million RISEC sale
At the same time, Shell is selling its interests in RISEC
Holdings to Constellation Energy Generation for $715 million.
RISEC owns a 609-MW, two-unit combined-cycle gas turbine power
plant serving the New England electricity market.
Shell Energy North America had previously acquired RISEC,
securing access to the plant's capacity and associated trading
opportunities. The company said the arrangement enabled it to
generate value through its asset-backed trading strategy.
The sale will allow Shell to bring forward returns that it had
expected to generate through longer-term ownership of the asset,
with the transaction resulting in a significant gain on the
sale.
SENA has maintained an energy conversion agreement with RISEC
covering the plant's full electricity output since 2019. That
agreement will terminate once the transaction is completed.
The sale therefore represents a different element of Shell's
portfolio strategy from the Hunlock acquisition: while the
Pennsylvania deal increases Shell's physical exposure in a
strategically important US power market, the RISEC transaction
allows the company to monetize an existing asset and redeploy
capital.
Power trading at the center of Shell's US
strategy
Shell Energy North America is a full-service energy company that
trades and markets natural gas, wholesale and retail electricity,
environmental products and risk-management solutions.
The company has more than 25 years of experience in US gas and
power markets and records more than 210 million megawatt-hours of
annual wholesale and retail power sales across North America.
Its strategy is closely linked to Shell's wider global trading
business, which spans crude oil, refined products, natural gas and
LNG, electrical power, environmental products, biofuels, chemical
feedstocks and freight.
Physical generation assets are particularly valuable to energy
traders because they can provide a source of electricity, capacity
and market flexibility that can be optimized alongside financial
and physical trading positions.
Shell has been active in US energy markets for more than a
century and has developed a broad portfolio extending from oil and
gas production and LNG to renewable power, solar, battery storage,
biofuels, hydrogen and electric-vehicle charging.
From gas-fired generation to solar and
storage
While the Hunlock transaction expands Shell's gas-fired
generation portfolio, the company's US energy activities
increasingly span multiple forms of energy and supporting
infrastructure.
Shell owns 100 percent of Savion, a Kansas City-based solar
developer with solar and energy-storage projects under development.
The company also has interests in onshore wind projects in
California and Texas and provides renewable power options to
commercial and industrial customers.
Battery storage is another component of Shell's US portfolio.
The company owns sonnen, a manufacturer of smart solar energy
storage systems, giving Shell exposure to a technology that can
help balance electricity supply and demand and support the
integration of intermittent renewable generation.
Shell's US solar footprint also includes solar installations
supporting its own operations, including a 326-kilowatt system at
its Stockton distribution terminal and a 300-kilowatt installation
at the Shell Technology Center in Houston. The company also holds a
stake in Silicon Ranch, a solar company headquartered in Nashville,
Tennessee.
Shell's diversified approach reflects the changing structure of
US electricity markets, where demand growth, renewable deployment,
grid constraints and the increasing need for flexible generation
and storage are reshaping the value of power assets.
Broader US energy footprint
Shell's US operations extend well beyond electricity.
The company says its total US production share stands at around
377,000 barrels of oil equivalent per day. It operates 10
deep-water production hubs in the Gulf of America, alongside one
non-operated hub and an extensive subsea infrastructure
network.
Shell describes itself as the largest producing leaseholder in
the Gulf of America and says its production has among the lowest
greenhouse gas intensity when compared with oil and gas producers
belonging to the International Association of Oil & Gas
Producers.
The company also has a significant US midstream business, owning
and operating approximately 3,400 miles of active pipelines, five
crude and refined-product storage facilities and two caverns.
Around 70 percent of Shell's Gulf of America production flows
through Shell-operated pipelines, while its US infrastructure
transports approximately 1.5 billion barrels of crude oil, refined
products, chemicals and natural gas liquids annually.
In LNG, Shell Trading (US) Company is active across natural gas
and liquefied natural gas markets, with Shell describing itself as
the largest buyer of US-produced LNG for export. The company has
also developed a global LNG marine-bunkering network.
Shell's expanding low-carbon activities
Shell's US portfolio also includes businesses linked to
lower-carbon energy.
The company has an ownership stake in LanzaJet, which uses
catalytic conversion to produce sustainable aviation fuel from
alcohol. Shell has signed sustainable aviation fuel supply
agreements with airlines including JetBlue, Alaska Airlines and
Delta, as well as corporate customers such as Google, Deloitte and
American Express Global Business Travel.
Shell also operates renewable natural gas facilities including
Shell Galloway, Shell Bovarius and Shell Friesian.
In transportation, Shell operates EV charging points at
Shell-branded fuel stations and standalone EV hubs in high-growth
electric-vehicle markets. The company also operates three
heavy-duty hydrogen truck refueling stations in California,
supporting freight movements from the ports of Los Angeles and Long
Beach into Southern California.
Its US retail network comprises approximately 12,000
Shell-branded fuel stations, serving around seven million customers
each day.
Refining, chemicals and lubricants
Shell maintains a substantial industrial footprint in the US,
including refining, chemicals, lubricants and technology
businesses.
Its Shell Energy and Chemicals Park Norco in Louisiana combines
refining and chemicals operations. Shell also operates chemical
manufacturing facilities in Louisiana, Pennsylvania and Texas,
producing materials used in products ranging from soaps and
household cleaning products to plastics and construction
materials.
The company's US lubricant operations include six blending and
packaging plants in Michigan, Texas, West Virginia and California,
while Shell also holds a 49-percent stake in Blue Tide
Environmental, which produces re-refined base oil in Baytown,
Texas.
Shell Catalysts and Technologies provides catalysts, technical
services and licensed process technologies to refineries,
gas-treatment facilities and chemical plants worldwide, with US
operations in California, Indiana and Louisiana.
Against this backdrop, the Hunlock and RISEC transactions
underscore Shell's intention to actively manage individual assets
rather than simply expand its US power footprint. The company is
seeking to combine physical generation, trading and optimization
capabilities while maintaining the flexibility to deploy capital
toward markets and technologies where it sees the strongest
opportunities.
