Honduras turns to LNG to meet energy needs

Honduras is addressing its growing energy demand with a strategic LNG-to-power initiative centred on the Brassavola Thermal Power Plant in San Pedro Sula.

As the country grapples with a shortfall in power supply exceeding 250 MW, Genesis Energías is spearheading efforts to introduce a reliable and cost-effective energy source by importing liquefied natural gas (LNG).

The LNG carrier Bilbao Knutsen, built in 2004 for and operated by the Knutsen Group, will play a pivotal role in this project. A turbine engine vessel capable of transporting 138,000 m³ of LNG, the ship will be converted into a floating storage unit (FSU) by HD Hyundai Marine Solution.

Once operational, the FSU will serve as the backbone of LNG storage at a new terminal under construction in Puerto Cortes on Honduras’ Caribbean coast. The project represents a step towards diversifying the nation’s energy mix and reducing its reliance on traditional fossil fuels.

Genesis Energías noted the initiative aims to lower production costs and stimulate industrial growth, with natural gas seen as a bridge fuel in Honduras’ energy transition.

The stored LNG will be transported to the Brassavola Thermal Power Plant, a 240-MW combined-cycle facility that is expected to supply reliable electricity to the national grid while significantly improving efficiency and reducing emissions.

Law firm Watson Farley & Williams advised Genesis Energías on the chartering arrangements for Bilbao Knutsen. The law firm’s London maritime team, led by partner Joe McGladdery, noted the innovative nature of the transaction and its contribution to advancing cleaner energy solutions in the region.