Panda Power to jointly develop 1,000MW combined cycle plant in Pennsylvania

Panda Power Funds has entered into a joint venture with Sunbury Generation LP to develop, finance, construct and operate a 1,000 MW natural gas-fueled, combined-cycle power project near Shamokin Dam in Snyder County, Pennsylvania. The plant, expected to start commercial operation in the second half of 2017, is likely to supply power markets including Philadelphia and New York City.

The Panda “Hummel Station” power facility will come up at an 18-acre parcel of the 192-acre Keystone Opportunity Expansion Zone at the site of the recently retired Sunbury coal-fired power plant. Hummel Station is said to be one of the largest coal to natural gas conversion projects in the United States.

Significant advantage

The facility’s access to Marcellus Shale gas through the Marc I, Regency and Transcontinental regional gas pipelines is expected to provide Hummel Station with a significant operating cost advantage. 

The plant will interconnect to the pipelines through a 35-mile lateral that will be constructed by a subsidiary of UGI Energy Services. UGI commenced the permitting process for the pipeline with the Federal Energy Regulatory Commission in December 2014, after environmental and cultural surveys.

Todd W. Carter, president and senior partner of Panda Power Funds said, “We continue to see Pennsylvania as a great place to invest and are strengthening our roots here by partnering with well-established companies in the Commonwealth.”

Dave Meehan, president of Sunbury Generation said, “We found a great partner in Panda. They currently have more generating capacity under construction in the United States than any other company. They have a deep bench in the power industry and know what they are doing.”

Panda Power Funds has two Marcellus gas-fueled generating stations currently under construction in Bradford and Lycoming counties. The 829 MW ‘Liberty’ power plant located in Towanda, Pennsylvania, is likely to enter commercial operations in early 2016. The 829 MW ‘Patriot’ power plant near Williamsport, Pennsylvania, is expected to enter commercial operations in the second quarter of 2016.