May 12, 2021
Invenergy, BW LNG Complete Financing of FSRU for Transformative LNG-to-Power Project
BW Tatiana is Central America’s first floating storage and regasification unit (FSRU), lynchpin of liquefied natural gas (LNG)-to-power project that will meet 30% of El Salvador’s energy demand
SAN SALVADOR, E.S. (May 12, 2021) – Global sustainable energy developer Invenergy and global liquefied natural gas (LNG) solutions provider BW LNG today 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.
We are innovators building a sustainable world. Invenergy and its affiliated companies develop, own, and operate large-scale sustainable energy generation and storage facilities in the Americas, Europe and Asia. Invenergy’s home office is located in Chicago, and it has regional development offices in the United States, Canada, Mexico, Colombia, Japan, Poland and Scotland. Invenergy has successfully developed more than 27,000 megawatts of projects that are in operation, construction or contracted, including wind, solar, and natural gas power generation facilities as well as advanced energy storage projects. For more information, please visit www.invenergy.com.
About BW LNG
BW LNG creates floating solutions for LNG to support progress to a low carbon society. Today we own and operate a fleet of 30 LNG carriers and Floating Storage and Regasification Units from our offices in Oslo, Singapore, Bejing, Manila, Mumbai, Rio and Houston. We are constantly looking for new solutions to serve our customers and society, all the while striving for Zero Harm to people and the environment.
BW LNG is a part of BW Group, a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies. Founded in 1955 by Sir YK Pao, BW controls a fleet of over 420 vessels transporting oil, gas and dry commodities, with its 190 LNG and LPG ships constituting the largest gas fleet in the world. In the renewables space, the group has investments in solar, wind, batteries, biofuels and water treatment.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
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