bp, partners finalize deal for LNG-to-power projects in Brazil

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bp, Siemens and EIG Global Energy Partners-controlled Brazilian company Prumo have finalized with SPIC Brasil for LNG-to-power projects in Brazil.

Under the agreement, SPIC has purchased 33% stake in GNA I and GNA II LNG-to-power projects located in Port of Açu, Rio de Janeiro.

Separately, SPIC has closed a previously announced agreement to take part in potential future expansion projects, GNA III and GNA IV.

The estimated total planned investment in the GNA gas and power complex is approximately $5bn.

The projects are expected to be powered by a combination of LNG and domestic gas from Brazil’s vast pre-salt reserves.

With a total capacity of 3GW, GNA I and GNA II is considered as the largest gas-to-power project in Latin America. Upon completion, the project will generate enough energy to power up to 14 million households.

Apart from an LNG terminal with a total capacity of 21 million m3/day, the project will also include pipelines capable of connecting offshore pre-salt gas and LNG to Brazil’s gas transportation network.

With an installed capacity of 1.3GW, GNA I is expected to enter into service in the first half of 2021.

GNA II is planned to have a capacity of 1.7GW.

The project partners stated: “The successful close of this transaction during the COVID-19 pandemic reinforces GNA’s position as a key player in Brazil’s rapidly growing natural gas and power markets and a catalyst for the global energy transition.

“This agreement strengthens Brazil’s position as a fertile environment for attracting new investments and helps lay the groundwork for the GNA III and GNA IV expansion projects and the domestic gas hub strategy and renewables projects.”

Power plant construction will be handled by Siemens Energy, while bp will contribute its global portfolio of LNG serving as a key integrated and innovative gas supplier.