China Enters Brazilian LNG-to-Power Projects
Spic Brasil, a subsidiary of China's State Power Investment Corp, has closed the purchase of 33% interests in the GNA I and GNA II LNG-to-power projects in Brazil, it said on February 1.
The gas-to-power projects in Port of Acu, Rio de Janeiro, are set to be Latin America's largest, with a combined 3-GW generation capacity that can meet the energy needs of up to 14mn households. Their shared LNG terminal will bring ashore 21mn m3/day of gas. The projects also include pipelines linking offshore pre-salt gas and LNG with Brazil's gas transportation network.
The projects' other developers are Prumo, a Brazilian firm owned by EIG Energy Partners, UK major BP and Germany's Siemens. SPIC has also agreed with the partners on its participation in the potential GNA III and GNA IV gas-to-power projects.
The 1.3-GW GNA I project is due to come online by mid-year. A first LNG cargo supplied by BP arrived at the BW Magna floating storage and regasification unit in late December. The 1.7-GW GNA II has secured $737mn in financing from the Brazilian Development Bank and is on track for launch in 2023. The overall cost of the two ventures is estimated at $5bn.
Spic said it would provide its expertise in operation and project management strategy in Brazil. Siemens is bringing financing to the table and will also handle construction and long-term operation and maintenance. BP will draw from its global LNG portfolio to supply the projects.
(banner image courtesy of GNA)