EDP Closes Financing for El Salvador LNG-to-Power Project
(P&GJ) — Energía del Pacífico (EDP) said it has completed project financing for the LNG-to-power project currently under construction at the Port of Acajutla, El Salvador
The infrastructure project brings approximately $1 billion foreign direct investment for the Central American nation, making it the largest private investment ever in the country, EDP said.
The project is comprised of a 378MW natural gas-fired power plant, a floating storage regasification unit (FSRU), and a 27-mile (44-km) electric transmission line that will connect to the Central American Electrical Interconnection System, strengthening the country’s electric grid. The project is scheduled to be operational by the end of 2021.
The plant’s use of natural gas will reduce the amount of imported diesel and heavy fuel oil fired generation in El Salvador’s electricity mix, resulting in significant environmental benefits for the country and the region, EDP said.
Development
U.S.-based Invenergy, a privately held global developer and operator of sustainable energy solutions, developed EDP in partnership with El Salvador-based partners Grupo Calleja, VC Energy de Centroamerica and Quantum Energy.
“Energía del Pacífico is a transformational project for El Salvador and the entire region – a shining example of the enormous opportunity that can be created, despite prior obstacles, when private initiatives have strong government support,” said Michael Polsky, Invenergy Founder and Chief Executive Officer.
EDP and Shell have executed a long-term agreement for supply of LNG for the project. In partnership with BW LNG and BW Offshore, LNG will be converted to natural gas on an FSRU that will be permanently moored offshore. Saam Towage will provide tug support services for the project. LNG delivered to the FSRU will be regasified and transported from the FSRU to the power plant through a sub-sea pipeline to be engineered and constructed by maritime infrastructure contractor Boskalis.
Power will be generated by Wärtsilä internal combustion engines running on natural gas and a steam turbine generator. Elecnor will engineer and construct the 230-kV double-circuit transmission line and associated substations.
Funding
EDP said its project financing came from Overseas Private Investment Corporation, International Finance Corporation, IDB Invest, Finnish Export Credit Ltd and KfW IPEX-Bank. White & Case served as transaction counsel, Arias as Salvadoran counsel and Astris Finance acted as financial advisor for EDP.
Eighty full-time, permanent jobs will be created to operate and maintain the power plant, FSRU and accompanying infrastructure. EDP will require more than 1,000 workers to build the project.
U.S. Ambassador to El Salvador Ronald Johnson said, “The Energía del Pacífico project represents a significant investment in El Salvador’s energy future. With Invenergy as a leading partner and financing from OPIC, EDP is the kind of private sector-driven infrastructure investment the United States’ America Crece initiative will promote throughout the region.”
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