BP Takes Another Step in Transforming Into an Integrated Energy Company
HOUSTON — BP is taking another step in its transformation into an integrated energy company with the acquisition of EDF Energy Services.
Based in Houston, EDF Energy Services supplies power, natural gas and related services to commercial and industrial (C&I) retail customers across the United States. Its customer based is comprised primarily of large corporations and public entities, including retailers, universities, manufacturers and producers, municipalities and power generators. It does not supply residential consumers.
EDF Energy Services' wide geographical reach and significant set of diverse C&I customers will enable BP to expand its capability to deliver energy solutions and additional services directly to large end-user customers in new and existing markets.
Additionally, through the acquisition, BP will provide new opportunities for enhanced lower carbon integrated energy solutions for C&I customers, integrating with other BP businesses and capabilities that can support decarbonization goals. These could include BP Wind Energy, BP pulse and BP Launchpad, according to the company.
"BP's commitment to putting the customer first has helped make us the largest marketer of natural gas in North America for the last 20 years, as well as a top power marketer in the United States. This acquisition will give customers access to new opportunities across the energy value chain and allow BP to provide integrated solutions that assist them in decarbonizing, managing energy spend, and increasing reliability," said Orlando Alvarez, senior vice president gas and power trading Americas, BP.
The agreement includes the purchase of EDF Energy Service's full retail operating capabilities.
"EDF Energy Services is a leading retail power supplier in the U.S. to C&I customers. We are excited to welcome the team to BP," said Dave Lawler, chairman and president of BP America. "This is exactly the type of high caliber business that will help drive BP's transformation, giving more customers the secure, affordable and lower carbon energy they want while creating value for our shareholders."
The deal is subject to regulatory approvals. It is expected to close by the end of the year.
BP's gas and power trading Americas works with partners to buy, sell and move energy to provide solutions to more than 3,500 customers in North America annually.
The company's U.S. retail presence spans 7,300 sites in 35 states, including BP, ARCO/ampm, Amoco and Thorntons. BP has different retail models across the United States, ranging from company-owned retail stores, strategic partnerships, brand licensing, wholesale, business-to-business, dealer-owned and franchise-owned.