Morgan Stanley Infrastructure Partners (MSIP), the private infrastructure arm of Morgan Stanley Investment Management, announced Tuesday that it has reached an agreement to sell its ownership stake in Thermal Bayonne Holdings, LLC—the entity behind the Bayonne Energy Center (BEC)—to Jupiter Energy Investor, LLC.
The deal marks the conclusion of MSIP’s eight-year tenure with the facility, which it acquired in 2018 and managed through its TigerGenCo power asset management platform.
Despite its physical location in New Jersey, the Bayonne Energy Center serves as a vital artery for New York City’s power supply. The facility supplies electricity, capacity, and ancillary services exclusively to the five boroughs via a dedicated subsea cable system.
The plant operates within NYISO Zone J, one of the most critical geographic load zones managed by the New York Independent System Operator. As a “peaking resource,” the center is designed to respond rapidly to spikes in electricity demand, helping to maintain grid reliability during extreme weather or high-usage periods.
“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,” Dan Barbosa, executive director at Morgan Stanley Infrastructure Partners said.
Commissioned in 2012, the Bayonne Energy Center is a 660-megawatt dual-fuel generating facility. Its infrastructure includes:
- Technology: 10 simple-cycle aeroderivative gas turbines.
- Capabilities: Capable of rapid-start maneuvers to follow fluctuating electricity demand.
- Reliability: Managed under MSIP to enhance asset quality and operational resilience.
Chris Ortega, managing director and head of Americas at MSIP, noted that the facility “exemplifies MSIP’s approach to enhancing asset quality and resilience through active operational and commercial management.”
Transaction Timeline
| Detail | Information |
| Seller | Morgan Stanley Infrastructure Partners (MSIP) |
| Buyer | Jupiter Energy Investor, LLC |
| Lead Financial Advisor | Jefferies LLC |
| Expected Closing | Third Quarter of 2026 |
| Regulatory Status | Subject to customary closing conditions and approvals |
The financial terms of the agreement were not disclosed. The transaction is expected to finalize in Q3 2026, pending standard regulatory hurdles.
