Sustainable energy developer Invenergy and LNG solutions provider BW LNG have secured a $128.3 million loan from IDB Invest to fund the construction of a floating storage and regasification unit (FSRU), a key part 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.
Invernergy said the loan provided 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 company said.
The FSRU, which is a critical component of the EDP project, will have a regasification capacity of 280 million standard cubic feet per day and a storage capacity of 137,000 cubic meters of LNG. A subsea pipeline will transport re-gasified LNG to an onshore natural gas- ired power plant with a capacity of 378 megawatts (MW). 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.
"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.
"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.