Energía del Pacífico - platts.com · Energía del Pacífico 355 MW Tender Highlights • The Purpose of the tender was the supply of 355 MW of power and its associated energy to

Acajutla LNG to PowerProject Summary – June 2017

Energía del Pacífico


Background


355 MW Tender Highlights

• The Purpose of the tender was the supply of 355 MW of powerand its associated energy to seven private distributioncompanies in El Salvador.

• PPAs for 20 years.

• Fuel Cost + O&M are pass through costs.

• Coal and LNG permitted (Fuel Oil and pet coke banned).

• Fourteen PPAs with local Distribution Companies in El Salvador.


About us


About us• Energía del Pacífico, LTDA. de C.V. (EDP) has been granted an

International Tender organized by the government of El Salvadorfor a 20 year Power Purchase Agreement (PPA) to deliver 355MW and its associated energy.

• The Commercial Operation Date (COD) is in 2020 / 2021.

• The Project Site is located in the port of Acajutla, Sonsonate in ElSalvador, Central America.

• The Tender Process for the PPA was carried out under thesupervision of the Salvadorian General Superintendence ofElectricity and Telecommunications (SIGET).


SHELL:• LGN Supply

Wärtsilä:• Design & Build of the

Power Generation Plantand supply the powergeneration engines.

Main Suppliers


As a result of an International Tender for theLiquefied Natural Gas (LNG), that was supervised bySIGET, EDP received the official approval to proceedwith the negotiations regarding the long-termpurchase sale contract for LNG with Shell, whose bidwas rated as the most competitive among all bindingoffers received. Shell is also one of the largest LNGShipping Operators around the world.

SHELL


Wärtsilä, was founded in 1834, currently a globalleader in advanced technologies and completelifecycle solutions for the marine and energy markets,emphasizing sustainable innovation and totalefficiency.

Wärtsilä will be responsible in our Project for theDesign & Construction of the Power Generation Plant,as well as providing materials and equipment.


ProjectOverview


Location: Port of Acajutla, El Salvador

Site is located within the property of the Port of Acajutla, the mainport in El Salvador.

Acajutla Port

Acajutla

LNG Project

Site(378 MW) (300 MW)

Acajutla Port

(Existing)

New Infrastructure


Hybrid LGN Storage


Hybrid LNG Storage• Weather hedge: Regasification Barge Tank allows for long enough buffer to

remove FSU in case of bad weather conditions. Cofferdam structuresurrounding the Regasification Barge can be concrete or sheet piling.

• Capex: Keeps project cost competitive. FSU charter rates are attractivecompared to the cost of similar size land storage.

• Proven concept.

• LNG: Could be considered the most environmentally friendly Fossil fuel,because it has the lowest CO2 emissions per unit of energy and because itis suitable for use in high efficiency combined cycle power stations.


Power Plant Specifications• 19 natural gas Wärstilä engines 50SG in combined cycle

mode– Simple cycle mode: 348 MW– Steam turbine: 30 MW

Net Output: 378 MW• Heat Rate : 7.8 MMBTU/MW-hr

430MW Wartsila Flexicycle in Dominican Republic


Transmission Line

Acajutla

Ahuachapan

Transmission Line


• Project Initial conception by Quantum Energy (ElSalvador).

• 3Q Leased Land at Acajutla Port.

• 4Q Pre-Feasibility Study Concluded by TractebelEngineering and Gas Energy.

• 4Q Initial discussions with LNG suppliers.

• 4Q 350 MW DELSUR call for tender announced.

2012

• July, Quantum office established in Houston.

• October 1st, 355 MW Bid Presentation.

• November 25th, Bid Awarded to Quantum.

• December, Energía del Pacifico is created. $32.7M BondsSubmitted.

2013

Acajutla LNG to Power Project Milestones


• 2015, 2Q – Supervised tender for long term LGN supplies toEDP, Awarded to SHELL.2015

• On September, SIGET approved the extension of the initialterm for the supply of energy to July 1st, 2021.

• Power Plant and Marine Terminal EIA was submitted toMARN.

2016



• LNG Sales & Purchase Agreement withShell was approved by SIGET on February17th and it’s signature was in April.

• Transmission Line EIA was submitted toMARN.

2017



Electrical Interconnection Project


PPA RevenuesPayment Capacity:

• Fixed payment based on the Power Plant´s available capacity.Set by regulator.

Associated Energy:

• Take-or-pay contract for 70% of the energy from 355 MW(contracted capacity).

• Paid by DISCOs regardless if System Operator dispatches ordoesn’t dispatch the Power Plant.

Associated

Energy

Contrated

Capacity

(355MW)

Disco Load

Factor

(70%)

X= X

Energy

Price

(PEC)


Project Structure


The PPA establishes Three periods for the fuel supply term:

• 1 year, 2020. Project strategy approved bySIGET, is to request a long term contractfor 12 years, starting on the 2nd year ofoperation of the power plant.

Initial

Period:

• 12 years, 2021-2032. Contracted Period

• 7 years, 2033 – 2040.Remaining Period

LNG Sales & Purchase Agreement with Shell wasapproved on February 17th and it was signed in April2017.

Fuel Supply under the PPA


GeneralProgressto Date


Environmental Impact Assessment

• Marine Works, Power Plant and Transmission Line EIA Submitted to MARN

• We are currently waiting for MARN's response.

Interconnection Approval

• On December 7th, 2016 the local interconnection was approved by ETESAL.

• We are currently in the process of getting the approval for the RegionalInterconnection with CRIE, pending approval of the T-Line and Power Plant& Marine Terminal Environmental Impact Assessment.


FSRU

• Meetings between EXMAR and local government authorities.

• EXMAR and Bureau Veritas met with various regulatory entities included theMinistry of Economy (Hydrocarbon) and the Maritime Port Authorities topresent a highlight of the project, conceptual design and shipyard selectionbidding process.

Power Plant

• Geotechnical Campaign completed.


Marine Studies

• Marine Geotechnical Study: work completed.

Economic and Social Development at The Project Site

• An investment was made for $500K in road infrastructure in the city ofAcajutla.

• Currently in the approval process for the Social Projects to be carried out in Acajutla for the year 2017.


EDP Project Schedule Summary

EIA Marine Works and Power Plant

2014 2015 2016 2017 2018 20202019 2021

Financial Close

Marine Works (Cofferdam)/FSRU

Power Plant

T-line

EIA T-line

SalvadoreanConcession

COD


Visit us at: www.energiadelpacifico.com

http://www.energiadelpacifico.com/

Documents

Energía del Pacífico - platts.com · Energía del Pacífico 355 MW Tender Highlights • The Purpose of the tender was the supply of 355 MW of power and its associated energy to