Brazil and Germany co-finance 1.3 GW LNG-to-Power project at Açu Port

Monday, 04 February 2019
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Development banks of Brazil and Germany, BNDES and KfW Ipex-Bank, have agreed a corporate financing deal worth R$1.76 billion ($471m) for an LNG-fuelled power project at the port of Açu, Brazil. The financing covers 39% of the total project costs of R$4.5 billion, with the 1.3 GW plant to be built by Prumo Logística and Siemens. 

The financing deal was structured in a way that BNDES will provide the credit while KfW will be responsible for guaranteeing the operation, supported by the German export credit agency Hermes.

The deal structure could serve as a blueprint for future infrastructure financing. “More than an operation, what we are building here is a business model that can be used in other operations,” said Dyogo Oliveira, president of BNDES. For the Brazilian development bank, the Açu Port venture is the the first LNG thermoelectric plant it is financing, in an unprecedented partnership with KfW.

EPC to start in Q1-2019

Prumo Logística’s subsidiary, Gás Natural Açu (GNA), in January 2018 hired a consortium of Siemens and Andrade Gutierrez to handle engineering solutions, supplies, and construction of the power plant. Design and site preparation works are intended to start in Q1-2019.

Once commissioned, the project will be the largest integrated LNG import and power generation project in Latin America. The project includes two gas-fired combined-cycle power units, as well as an LNG regasification terminal with an output of 21 million cubic metres per day. With 1,238 MW installed capacity, the plant will supply enough electricity to supply approximately 3 million households in the region of São João da Barra.

Initially, the LNG-to-power project was not meant to be developed in the Port of Açu in the Rio de Janeiro state but in Brazil’s northeastern Pernambuco state. However, Prumo transferred the project location after it took over the-called Novo Tempo gas power project from the Bolognesi Group, seeking to set up an LNG hub in the Port of Açu.

The Açu Gas Hub seeks to receive, process and offer to the Brazilian market a large volume of gas either imported as LNG for produced offshore at the Santos, Campos and Espírito Santo basin. It has 6.4 GW in environmental licenses for gas-fired power plants, as well as permits for an LNG regas and import terminal with a capacity of 10 million cbm per day. A licensing process is underway for a 40 MMm³/d regas terminal. 

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