Shell has agreed to sell its interests in a 609-megawatt natural gas power plant in Rhode Island, United States, for $715 million as part of a broader restructuring of its power generation portfolio.
The energy company will sell its stake in RISEC Holdings to Constellation Energy Generation, which will take control of the gas-fired facility serving the ISO New England electricity market.
Shell is also expanding its presence in another US power market through the acquisition of Hunlock Creek Generating from Riverview Power Holdings, an indirect subsidiary of Castleton Commodities International. The purchase price was not disclosed.
Hunlock Creek operates 169MW of gas-fired generation in Pennsylvania, consisting of a 125MW combined-cycle plant and a 44MW simple-cycle facility used during periods of peak electricity demand.
The acquisition will increase Shell’s exposure to the PJM Interconnection, the wholesale electricity market covering 13 states and the District of Columbia and serving more than 65 million people.
Shell said the Pennsylvania assets will complement its existing natural gas and electricity trading activities by providing additional flexible generation capacity.
The company’s sale of the Rhode Island plant comes about 18 months after it completed the acquisition of the facility in January 2025. Shell had previously secured the plant’s entire electricity output through an energy conversion agreement that began in 2019.
That arrangement will end once Constellation completes the acquisition.
Shell said the $715 million sale allows it to realise returns from the asset earlier than anticipated and will generate a significant gain, although it did not disclose the value of the gain.
The transactions reflect Shell’s strategy of using power generation and storage assets to support its energy trading business while selling investments when market conditions provide an opportunity to lock in returns.
According to Shell, the Hunlock Creek acquisition is expected to deliver returns above the investment thresholds established for its power business.
Both transactions are subject to regulatory approval and are expected to be completed in the first quarter of 2027.
