The project involves the purchase and conversion of a liquified natural gas (“LNG”) carrier to a Floating Storage and Regasification Unit (“FSRU”). The FSRU will be permanently moored at the port of Acajutla in Sonsonate, El Salvador, to provide liquified natural gas regasification services to Energia del Pacifico Limitada de C.V. (“EDP”), a 378-megawatt combined cycle thermal power plant financed by IDB Invest in 2019. The FSRU is an essential piece for the operation of the LNG-to-power plant, which is expected to be the lowest cost thermal generator in El Salvador, and at the same time provide reliable energy, reduced carbon emissions and increased foreign investment.
The project sponsors are BW Gas Ltd (“BW”) and Invenergy Investment Company LLC (“Invenergy”). The project developers and borrowers are: i) FSRU, Ltda. de C.V, a Salvadorian company; and ii) FSRU Development Pte Ltd., a Singaporean firm. Both borrower companies are jointly owned by the sponsors.
BLP acted as local counsel to the IDB Invest in the negotiation and formalization of the financing project, for an aggregate amount of approximately US$130 million. The BLP team was led by partners Zygmunt Brett and Mariana Nochez, together with associates Antonella Imbers. and José Góchez.