Excelerate Energy signed an agreement with the Puerto Rico Electric Power Authority (Prepa) for the development and permitting of a floating LNG regasification facility off the southern coast of Puerto Rico.
The US company has set up similar LNG import facilities in Brazil, Argentina, Kuwait, the US and the UK.
The facility, named Aguirre GasPort, will provide fuel to the Central Aguirre Power Plant and is a step forward in the island's strategy to convert power generation from high-cost mported
oil to cost-effective, cleaner natural gas, said Houston-based Excelerate.
The Central Aguirre Power plant has already converted 600 mehawatts of its available 1500MW to utilize natural gas and has plans to convert the remaining 900MW prior to completion of the Excelerate GasPort.
The Aguirre terminal will be located about four miles offshore the southern coast of Puerto Rico, near the towns of Salinas and Guayama and will use one of Excelerate's 150,900 cubic metres capapcity floating storage and regasification vessels, a statement said.
The facility will operate year-round, delivering natural gas to Prepa's power plant.
"We are extremely pleased to partner with PREPA in providing Puerto Rico with a reliable, clean fuel source for power generation that will greatly reduce air emissions for the Island," said
Rob Bryngelson, Excelerate Chief Executive.
"Our experience and expertise in delivering floating regasification solutions in a cost-effective and timely manner ensure that we will provide an efficient and reliable project for Prepa," Bryngelson added.
The facility will require authorization from the US Federal Energy Regulatory Commission and be subject to a full public environmental review and analysis under the National Environmental Policy Act. The facility is expected to be in-service in 2014, it added.
