SPIC closes Brazilian LNG-to-power deal
Gas Natural Acu will be the largest gas-fired power facility in Latin America
10 Feb 2021 | Michael Marray

China's State Power Investment Corporation (SPIC) has completed its acquisition of a 33% stake in two LNG-to-power projects in Brazil. Gas Natural Acu (GNA) is a 3GW integrated LNG-to-power project being developed in two phases at the Port of Acu, Rio de Janeiro, Brazil. It will be the biggest gas-fired power facility in Latin America.

The 1.3MW GNA-I combined cycle plant is expected to come online in the first half  of this year. This will be followed in 2023 by the 1.7GW GNA-II second phase, with an estimated investment of US$1.1 billion. The authorization for the construction of the GNA-II power plant at the Port of Acu was granted by Brazil's Ministry of Mines and Energy in the first quarter of 2018.

Prumo, a private Brazilian company controlled by EIG Global Energy Partners, as well as BP, Siemens and SPIC Brasil (SPIC) announced the completion of the previously announced transaction on February 1.

BofA Securities and Lakeshore Partners acted as financial advisers to GNA and its sponsors. Itau BBA acted as exclusive financial adviser to SPIC.

SPIC 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 fuelled by a combination of LNG and domestic gas from Brazil’s pre-salt reserves.

The GNA 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.

Financing agreement

The first LNG cargo for GNA I, supplied by BP, was successfully transferred to the BW Magna floating storage and regasification unit (FSRU) last December.

GNA II has already secured a US$737 million financing agreement with the Brazilian development bank BNDES.

A statement from the project company said SPIC’s contribution to this partnership is centred on its expertise in operation and project management strategy in Brazil.

Siemens Financial Services is contributing capital, innovative technology and its expertise managing similar projects. Siemens Energy will be responsible for the power plant construction and will also provide long-term operation and maintenance (O&M) services.

BP will contribute its global portfolio of LNG acting as gas supplier.

Prumo will contribute the entire port infrastructure and operations to the partnership, while steering project development and integration. 

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