The $128.3m package will help in acquiring and converting the BW Tatiana LNG carrier to an FSRU
Invenergy and its partner BW LNG have closed a financial package of $128.3m with IDB Invest pertaining to the floating storage and regasification unit (FSRU) component of the 378MW Energía del Pacífico (EDP) LNG-to-power project in El Salvador.
According to Invenergy, the financial package comes with a 15-year contractual term given to FSRU Ltda. de CV in El Salvador.
The proceeds from the package will help in buying and converting the BW Tatiana LNG carrier to an FSRU.
The vessel will be moored permanently at the Port of Acajutla in Sonsonate. It will be jointly commissioned, operated, and maintained by Invenergy and BW LNG.
Invenergy finance and capital markets senior vice president Meghan Schultz said: “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.
“This landmark, multi-component project is only made possible through the collaboration and support of our incredible partners.”
The FSRU will be designed to regasify 280 million standard cubic feet a day. Its LNG storage capacity is planned to be 137,000 cubic meters.
The LNG regasified by the vessel will be transported through a subsea pipeline to the associated natural gas-fired power plant.
The third component of the EDP LNG-to-power project is a 44km long 230kV electric transmission line that will connect the power plant to El Salvador’s grid and also the Central American Electrical Interconnection System (SIEPAC).
Scheduled to be completed next year, the EDP LNG-to-power project will help meet 30% of El Salvador’s energy demand.
The power project is underpinned by power purchase agreements with seven distribution companies in the country.
BW Group treasury and corporate finance vice president Jessica Cheung said: “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.”