Hetco stops power trading

Hetco, the New York-based proprietary energy trading company, has closed its power trading desk. Hetco was created in 1997 as a joint venture between US oil major Amerada Hess and Stephen Hendel and Stephen Semlitz, two former partners of Goldman Sachs, who built the J Aron energy trading business in the 1980s and 1990s. Hetco actively traded electricity for the last year.

An Amerada Hess spokesman told RiskNews that although the business was profitable, Hetco decided the commitment required for becoming a major player in the market was too large. The decision to pull out from the market was unrelated to liquidity concerns, the spokesman said.

Hetco was active in both the US and European power markets. The company’s crude oil, natural gas and oil products trading desks will not be affected by the decision, the spokesman added, and Hetco is also expected to continue with its weather derivatives operation.