Entergy expects to build more natural gas generation in near term

Entergy (NYSE:ETR) expects to build more natural gas-fueled generation in the next few years, Entergy Chairman and CEO Leo Denault and other officials said April 28 during a quarterly earnings call.

In recent months, Entergy has already commissioned 560-MW Ninemile 6 combined-cycle natural gas plant in Louisiana and announced the planned purchase of much of the generating capacity at the gas-fueled Union Power Station (UPS) in Arkansas.

“And by 2020, we see a need to construct approximately $3.7 billion in new generation resources, consisting of six new power plants,” Denault said. “On the generation front, the utility supply plans include, for example, three new-build CCGTs [combined-cycle gas turbines],” the CEO said.

One 800 MW plant in the Amite South region is possible pending the results of the RFP that is underway to solicit proposals for new generation in this region of our system, Denault said.

Another plant would be within the Lake Charles, La., area, which is experiencing rapid industrial expansion. Completion of this facility is targeted for 2021. A third would be in Texas, specifically the Western region, also by 2021, the CEO added.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.