Warburg invests $300m in natural gas company

The New-York based private equity firm continues to invest in the energy sector. Its growth capital investment in Competitive Power Ventures marks more than $3bn invested in energy companies worldwide.

Warburg Pincus will invest up to $300 million (€211 million) in Competitive Power Ventures Holdings, a US firm with a focus on the development of North American natural gas projects.

Warburg’s investment will specifically target natural-gas fired projects in markets that are receptive to independently-owned power generation, where a halt in construction of new capacity and growing demand for electricity has created a need for significant capacity additions, CPV said.

Maryland-based CPV has 8,000-megawatts of conventional energy generation projects in various stages of development with plans for about 2,300-megawatts to enter construction in the next two years. The company also has about 5,000-megawatts of wind power projects in development.

Warburg has invested about $3.5 billon in more than 30 energy companies worldwide. Warburg led a $300 million investment in Canadian oil and gas exploration company Canbriam earlier this year and $175 million in Chinese oil logistics company Titan Petrochemicals last March.