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Eneva, ex-MPX, starts operating Brazil gas-fired power plant

Wednesday, 23 Oct 2013 | 10:11 AM ET

RIO DE JANEIRO, Oct 23 (Reuters) - Eneva SA, the Brazilian electricity-generation company controlled by Germany's E.ON, began commercial operations at its third natural gas-fired power plant in Brazil's northeast, the company said in a statement on Wednesday.

The Parnaiba III plant, which adds a new source of revenue to the company formerly controlled by Brazilian tycoon Eike Batista, can produce 169 megawatts of electricity.

The plant boosts Eneva's generation capacity in the Parnaiba region of Maranhão state to 845 megawatts. Its gas consumption will rise to 5.5 million cubic meters a day.

Batista ceded control of Eneva, formerly known as MPX Energia SA, to E.ON earlier this year, after a collapse in the share prices of companies in his EBX energy, oil, mining, port and shipbuilding group. The collapse left the former billionaire without new sources of cash for investment.

Batista-controlled OGX Petroleo e Gas Participações SA receives the bulk of the revenue from Eneva's gas purchases.

(Reporting by Jeb Blount; Editing by Gerald E. McCormick)