Global sustainable energy Invenergy and global liquefied natural gas (LNG) solutions provider BW LNG announced that they recently closed a $128.3 million financial package with IDB Invest to finance the special-built floating storage and regasification unit (FSRU) component of the Energía del Pacífico (EDP) LNG-to-power project in El Salvador.
The financial package has a 15-year contractual term granted to FSRU Ltda. de CV in El Salvador. The funds provide valuable resources for the purchase and conversion of the BW Tatiana LNG carrier to an FSRU. This is the region's first FSRU, which will be permanently moored at the Port of Acajutla, Sonsonate, El Salvador. Invenergy and BW LNG will jointly commission, operate and maintain the FSRU.
"The close of financing for the FSRU represents a significant step forward in the completion of the transformational EDP project, the foundation for El Salvador's clean energy future," said Meghan Schultz, Senior Vice President, Finance and Capital Markets at Invenergy. "This landmark, multi-component project is only made possible through the collaboration and support of our incredible partners. We are pleased to partner with BW LNG and IDB Invest as they share our commitment to innovation and excellence, and our vision to provide affordable, reliable energy to the region."
"BW is grateful for the opportunity to bring clean, affordable energy to the region, with the support of Invenergy and IDB Invest. Besides enhancing this project's competitiveness, we hope this financing encourages the development of many more LNG-to-power projects in the region," said Jessica Cheung, Vice President, Group Treasury & Corporate Finance, at BW Group.
A key part of the EDP project, the FSRU will have a regasification capacity of 280 million standard cubic feet a day and an LNG storage capacity of 137,000 cubic meters. Regasified LNG will be transported via a subsea pipeline to the onshore 378-megawatt (MW) natural gas-fired power plant. A 44-kilometer, 230 kV electric transmission line will connect the power plant's output to the Central American Electrical Interconnection System (SIEPAC), strengthening the region's electric grid.
Upon its completion in 2022, the EDP project will meet 30 percent of El Salvador's energy demand with cleaner, reliable power through power purchase agreements with seven of the country's distribution companies. EDP's use of natural gas will reduce the country's reliance on imported diesel and heavy fuel oil-fired generation, resulting in significant environmental benefits for the region.
