Sycar steps forward with Ecuador FSRU project
The U.S. project development company Sycar has teamed up with an LNG trading company to develop an LNG terminal in Ecuador.
The company noted the project will include a floating storage and regasification unit (FSRU). The FSRU will supply regasified LNG to an existing power plant as well as deliver volumes to an LNG truck filling station.
This project is intended to introduce natural gas to the Ecuadorian energy matrix as a Phase 1 for a future onshore LNG storage terminal.
The project is being developed for Bajo Alto in El Oro Province near the existing Thermo Gas Machala power plant. This is a privileged location, with water depths of 36 feet average sheltered in inland waters.
The project has been awarded a concession from the Undersecretary of Ports as well as the FSRU operation approval from the Secretary for the Regulation and Control of Hydrocarbons in Ecuador on June 24.
Sycar is now in the process of environmental licensing, which the company expects to have by the fourth quarter of 2020.
Additionally, Sycar noted it expects to reach financial closure on the project in early 2021. It plans to kick-start construction in 2022 with first gas flows to start later that year.
Once set up, the project will have an initial regasification capacity of 50 million standard cubic feet per day.