IDB Invest, a member of the IDB Group, structured a US$128.3M package to finance a floating storage and regasification unit (FSRU) to be installed in El Salvador by Invenergy and BW LNG
The project has acquired an LNG tanker that is being converted into an FSRU with 137,000-m3 of LNG storage capacity. The FSRU will be used for the 378-MW Energía del Pacífico project, which IDB Invest also financed, the first natural gas plant in Central America’s northern triangle (Honduras, El Salvador and Guatemala).
The financial package has a 15-year term and consists of a US$85.8M loan from IDB Invest and a US$42.5M loan from the China Co-financing Fund for Latin America and the Caribbean.
Singapore’s Keppel Shipyard will convert BW Gallina to an FSRU and the vessel will be anchored 1.2 km offshore off El Salvador’s Port of Acajutla and provide LNG storage and regasification services to Energía del Pacífico, developer of El Salvador’s first LNG-to-power project.
By supplying LNG as an input for the plant, the project is expected to help diversify El Salvador’s energy supply to reduce the country’s reliance on heavy fuel oil, and reduce dependence on electricity imports from the region.
Once in operation, this project and the Energía del Pacífico plant is expected to increase the installed energy capacity of El Salvador by 20%.
The project is scheduled to be operational by the end of 2021.
Riviera Maritime Media will provide free technical and operational webinars in 2021. Sign up to attend on our events page