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Seminário

de Gás Natural

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GNL para Geração Termoeléctrica na América Central – Energía del Pacífico (EdP)

Seminário de Gás Natural

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Case Study

Una nueva energía para el El Salvador

►Energía del Pacífico(EdP)

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► Quantum Energy is the developer of an LNG to Power project in the

port of Acajutla in El Salvador

► In 2011, Quantum approached the GasEnergy group for assistance in

developing the project

► GasEnergy role was executed via SouthEnergy and included LNG

procurement strategy, Project Design and Strategic Partnership

selection process

► Quantum and Wartsila agreed to participate in a 355MW tender in

2013 that was won. PPAs signed in December 2013

► Energía del Pacífico is the name of the JV and is now in the process

of incorporating a strategic investor

► Commercial Operation Date is Jan 1, 2018

Project Highlights and Update

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Project Overview

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Site is located within the property of the

Port of Acajutla, the main port in the

country.

Location: Port of Acajutla El Salvador

Acajutla Port

Acajutla

LNG Project

Site

(380 MW) (300 MW)

Acajutla Port

(Existing)

New Jetty

ACAJUTLA

NICARAGUA

HONDURAS

GUATEMALA

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LNG Terminal and Power Plant Conceptual Design

LNG Terminal:

• LNG terminal capable to receive large

LNG carriers (125-180,000 m3)

• Hybrid Storage: Floating and Onshore

• Concept design by Tractebel

Engineering

Floating Storage - FSU:

• 125,000-145,000 m3 capacity

• Storage only, no regasification

Onshore Storage:

• 50,000 m3 full containment

tank

• Regasification using power

plant cooling jacket water

Power Plant:

• 380 MW

• Combined cycle

Electrical

Substation

Jetty 950m

long

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Updated Marine Layout (by SPT and OSL)

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Current FSRU configuration layout

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Project Layout Onshore

Plant

Fuel LNG

Output 380 MW

Flexicycle

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LNG Flow Diagram

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► 19 Wärtsilä gas engines model 50SG

► Combined cycle configuration (1 steam turbine)

► Heat Rate : 7750 BTU/kWh (HHV)

► Efficiency: 49%

Power Plant – 380 MW Wärtsilä FlexicycleTM

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75%

78%

80%

83%

85%

88%

90%

93%

95%

98%

100%

50% 60% 70% 80% 90% 100%

Re

lati

ve e

ffic

ien

cy

Relative output

Relative part load efficiency per technology

SPG

GT-HD

CCGT-HD

Flexicycl

e

► Reciprocating engines can be turned off 1 at a time

► High efficiency over a wide load range

► Multi-unit plant configuration: High reliability and availability

► Minimal derating due to extreme ambient conditions

Wärtsilä FlexicycleTM Features

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Electrical Interconnection

SIEPAC

Interconnection at Acajulta under discussion by ETESAL

Request

Project Site

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El Salvador Power Sector

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Power Generation Mix (MW)

48% Thermal

32% Hydro

14% Geothermal

6% Biomass

Hydro power

reached peak

potential

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Breakdown of Generation 2012 (GWh)

Source: CNE Boletin Resumen Annual 2012

Bunker

Hydro

Geothermal

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DELSUR 355 MW Bid Revenue model

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► Sell of 355 MW of new capacity and energy to seven private distribution companies in

El Salvador

► PPAs for 20 years (dollar denominated)

► Fuel Cost + O&M are pass through costs

► Coal and LNG permitted (Fuel Oil and pet coke banned)

► Bid due October 1st, 2013.

► COD January 2018

► Seven PPAs with the following Distribution Companies:

DELSUR 355 MW Tender Highlights

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Capacity Payment:

► Fixed payment based on plant available capacity. Set by regulator

► US$ 7.68 /kW month, adjusted annually by US CPI

Associated Energy:

► Take or pay payment for 70% of energy from 355 MW (contracted capacity)

► Paid by DISCOs regardless if System Operator dispatches or not the Project

PPA Revenues

Contracted

Capacity

(355 MW)

Disco Load

Factor

(70%)

Energy

Price

(PEC)

Associated

Energy

Disco Load Factor

• Average of daily Disco demand divided by

maximum annual demand. Currently at 70%

• Calculated annually

• Driven by DISCO demand and does not

depend on new capacity additions to the

system

PEC Components

• Fuel (Pass through)

• O&M (Pass Through)

• Margin (Investment + Fixed Expenses)

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Disco Max. demand

► Spot sales based on additional demand from the 70% DISCO load factor

► System Operator dispatches power plants based on marginal cost (fuel +

O&M)

► Spot sales projected to account for less than 20% of revenues

Project Associated Energy and Spot Sales

Disco Energy demand

Project Associated Energy

Spot Sales

DISCO energy demand

Associated energy

Spot sales

The Project Associated Energy mirrors the daily DISCOs demand curve

pro-rata for the 355 MW contracted capacity

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Regas Business Structure Options

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Business Model Proposed for Acajutla

LNG

Source

LNG

Shipping LNG

Terminal Regas

Independent

Power

Producers

Quantum

Power

Plant

NG

Market

El Salvador/C.A.

Distribution Electricity

Market

Offtakers Natural Gas

Offtakers Power

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Business Model Regas: Merchant Plant

LNG

Source

LNG

Shipping LNG

Terminal Regas

Independent

Power

Producers

Quantum

Power

Plant

NG

Market

El Salvador/C.A

. Distribution Electricity Market

Offtakers Natural Gas

Offtakers Power

Merchant Plant

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Business Model Regas: Tolling Plant

LNG

Source

LNG

Shipping LNG

Terminal Regas

Independent

Power

Producers

Quantum

Power Plant

NG

Market

El Salvador/C.A.

Distribution Electricity

Market

Offtakers Natural Gas

Offtakers Power

Tolling Plant

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Business Model Regas: Integrated Project

LNG

Source

LNG

Shipping LNG

Terminal Regas

Independent

Power

Producers

Quantum

Power

Plant

NG

Market

El Salvador/C.A.

Distribution Electricity

Market

Offtakers Natural Gas

Offtakers Power

Integrated Project

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Project Structure

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Quantum Energy)

► A company from El Salvador

► Grupo Zablah, majority shareholder

Wartsila Development & Financial Services

► The project development arm of the Wartsila Corporation

► Experience in developing IPP in Central America and the Caribbean

► Excellent track record in working with multilateral agencies

New Investor (under discussion)

Project Support:

► LNG: Gas Energy Group

► Conceptual design: Tractebel Engineering (Belgium);

► Legal: Andrews Kurth and Rusconi & Assoc. (El Salvador)

► Marine terminal: SPT Marine Transfer Services (UK), a Skaugen/Teekay co.

► Environmental: Dillon (Canada) and ECO Ingenieros (El Salvador)

Sponsors

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Project Timeline

IFC Led Financing (9-12 months)

2014 2015 2016 2017

COD

1 /Jan /2018

Jetty Construction (18 months)

LNG Tank and Regasification Construction (30 months)

Power Plant Construction (22 months) Power Plant

Engineering & Manuf.

Jetty Design

Commissioning

& Testing

(3 months)

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Project Cost: + $ 650M

Figures subject to finalization

$440 $45

$92

$112

USD Million

Termica + Regas

Interconexion Eléctricay otros

Capital de Trabajo

Costos Financieros

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Role of IFC

Enhanced

Guarantees for

LNG Supply

Debt

Lead Arranger

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Obrigado

Seminário de Gás Natural

► Maiores informações:

► Marco Tavares

► Esteban Papanicolau