Morgan Stanley Infrastructure Partners (MSIP), the private infrastructure arm of Morgan Stanley Investment Management, has agreed to sell its ownership stake in Thermal Bayonne Holdings, LLC—known as the Bayonne Energy Center—to Jupiter Energy Investor, LLC. The Bayonne Energy Center, located in Bayonne, New Jersey, supplies electricity, capacity, and ancillary services exclusively to the New York City metropolitan area via a dedicated subsea cable system.
The plant was commissioned in 2012 and was acquired by MSIP in 2018. It operates as a dual‑fuel, simple‑cycle aeroderivative gas‑turbine facility with a nameplate capacity of 660 MW (some sources report 644 MW). The Bayonne Energy Center functions as a peaking resource for the New York Independent System Operator’s Zone J, providing rapid start‑up capability that is critical for meeting peak demand in the city’s grid.
MSIP’s decision to divest the asset reflects its active portfolio‑management strategy. By monetizing a mature infrastructure holding, the firm can generate liquidity to reallocate capital toward newer opportunities, potentially including energy‑transition assets. The sale signals a shift in MSIP’s focus and underscores its commitment to maintaining asset quality and resilience through active operational and commercial management.
Jupiter Energy Investor, LLC—an entity linked to Jupiter Energy Limited, an oil exploration and production company—has expressed interest in acquiring the Bayonne Energy Center. While the buyer’s specific strategy is not detailed, the transaction aligns with Jupiter Energy’s broader interest in energy infrastructure and suggests a complementary fit with the plant’s role in the regional power market.
The sale occurs against a backdrop of significant energy‑transition pressures in New York City. The closure of the Indian Point nuclear facility has heightened the need for reliable peaking resources, and the Bayonne Energy Center’s quick‑start capability is increasingly valuable. MSIP’s divestiture may therefore be part of a broader realignment to address evolving grid reliability needs and market conditions.
The transaction price and terms remain undisclosed, and the deal is expected to close in the third quarter of 2026. “As the newest dispatchable generator serving New York City, Bayonne has demonstrated exceptional operational performance and plays a critical role in supporting New York’s grid reliability,” said Dan Barbosa, Executive Director at MSIP. “Bayonne exemplifies MSIP’s approach to enhancing asset quality and resilience through active operational and commercial management.”
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