Barclays Capital plans to acquire and manage most of the Duke Energy North America (DENA) portfolio of power and gas derivatives contracts.
Barclays Capital will receive approximately $700 million in consideration for its assumption of liabilities. The majority of that payment will be offset by the return of net collateral requirements to Duke Energy.
Barclays Capital began trading physical power and gas in North America in late 2004, an expansion of its commodities franchise in the Americas, as well as an addition to the scope of its global commodities business. The firm now executes physical transactions with clients in several natural gas pipelines in the US and Canada, and across power pools in the Eastern US. In 2004 Barclays Capital also added coal, freight, petrochemicals and emissions to its suite of products.
“As a leader in US power and gas trading, we are pleased to work with Duke and take over the management of this portfolio,” said Joe Gold, managing director and head of commodities in the Americas at Barclays Capital.