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Acajutla opts for FSRU

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Energía del Pacífico (EDP) has completed project financing for an LNG-to-power facility currently under construction at Acajutla, El Salvador.

The project comprises a 378 MW natural gas-fired power plant, an FSRU, and an electric transmission line that will connect to the Central American Electrical Interconnection System.

It 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 claimed.

US-based Invenergy, a private global developer and operator of sustainable energy solutions, involved EDP in partnership with locally-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 CEO. “Leveraging our decades of development, engineering, finance, construction and operating experience, Invenergy is uniquely positioned to lead this partnership and execute this complex project.” 

EDP and Shell have executed a long-term agreement to supply 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.

The regasified LNG will be transported from the FSRU to the power plant through a sub-sea pipeline to be engineered and constructed by Boskalis.

Financial institutions Overseas Private Investment Corp, International Finance Corp, IDB Invest, Finnish Export Credit and KfW IPEX-Bank are lenders to the project. White & Case served as transaction counsel, Arias as Salvadoran counsel and Astris Finance acted as financial advisor for EDP.