SPIC completes stake buy in Brazilian LNG-to-power project

SPIC Brasil informed it has closed the acquisition of a 33 per cent stake in Brazilian LNG-to-power projects.

SPIC Brasil, a unit of the global energy company State Power Investment Corporation, has acquired the stake in GNA I and GNA II LNG-to-power projects located in Port of Açu, Rio de Janeiro.

The deal was signed with Prumo, a Brazilian company controlled by EIG Global Energy Partners, bp and Siemens.

The company has also closed on the previously announced agreement to participate in potential future expansion projects, GNA III and GNA IV, which are expected to be fueled by a combination of LNG and domestic gas from Brazil’s vast pre-salt reserves.

Together, GNA I and GNA II comprise the largest gas-to-power project in Latin America, with 3 GW of installed capacity — enough to supply energy for up to 14 million households. The complex also includes an LNG terminal with a total capacity of 21 million m3/day and pipelines capable of connecting offshore pre-salt gas and LNG to Brazil’s gas transportation network.

GNA I, which has an installed capacity of 1.3 GW, will commence operations in the first half of 2021. The first LNG cargo, supplied by bp, was successfully transferred to the BW Magna floating storage and regasification unit (FSRU) on December 27, 2020.

GNA II secured a $737 million financing agreement with the Brazilian Development Bank (BNDES). With 1.7GW of installed capacity, GNA II is expected to create up to 5,000 jobs during construction and an additional 500 jobs when it begins operations.

The companies noted in a joint statement that SPIC’s contribution to this partnership is centered on its expertise in operation and project management strategy in Brazil.

Siemens Financial Services, the financing arm of Siemens, plans to contribute capital, technology and its expertise in managing similar projects. Siemens Energy will be responsible for the power plant construction and will also provide long-term operation and maintenance (O&M) service for the power plant.

bp will contribute its global portfolio of LNG acting as a key gas supplier. Prumo will contribute the entire port infrastructure and operations to the partnership while steering project development and integration, the statement reads.