Tenaska closes $780m financing for 925-MW Westmoreland gas plant in Pennsylvania

Independent power producer Tenaska has closed on roughly $780m of commercial financing for the 925-MW Tenaska Westmoreland Generating Station near Pittsburgh.

MUFG Union Bank, N.A., BNP Paribas, Citigroup Global Markets, and Industrial and Commercial Bank of China, Limited led the bank group for the financing.

Construction began earlier this year, with commercial operation targeted for 2018. Black & Veatch is the engineering, procurement and construction (EPC) contractor for the project.

The combined-cycle gas plant would be located at South Huntingdon Township in Westmoreland County, Pa. The Tenaska Westmoreland project is owned by Tenaska Pennsylvania Partners, LLC, which is comprised of affiliates of Tenaska and Diamond Generating Corp. (DGC), a subsidiary of Tokyo-based Mitsubishi Corp.

Mitsubishi Hitachi Power Systems will provide the two natural gas turbines for Tenaska Westmoreland.

Omaha-based Tenaska has roughly 2,500 MW of generating capacity in pre-financing development, the company said in an April 19 news release.

“Tenaska has a reputation for strong power projects that meet the needs of an evolving industry,” said Tenaska Vice President and Treasurer Dave Kirkwood. “We have the expertise to advance projects from concept into operation, and we have long-standing relationships with financial institutions to support that.”

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.