IDB Invest finances a key project to supply natural gas and diversify El Salvador's energy matrix
IDB Invest, a member of the IDB Group, structured a $128.3 million financial package to finance a floating storage and regasification unit (FSRU) to be installed in El Salvador by Invenergy, a leading U.S. global energy developer, and BW LNG, a leading owner and operator of liquified natural gas (LNG) carriers and floating storage regasification units (FSRUs).
The project has acquired an LNG tanker that is being converted into a FSRU with 137,000 m3 of gross LNG storage capacity. The FSRU will be for the exclusive use of the 378 MW Energía del Pacífico project, the first natural gas plant in the Northern Triangle, also financed by IDB Invest.
The financial package has a 15-year tenor and consists of a $85.8 million loan from IDB Invest and a $42.5 million loan from the Chinese Co-financing Fund for Latin America and the Caribbean, made to FSRU Ltda. de CV in El Salvador.
The vessel will be anchored 1.2 km offshore off the Port of Acajutla in the department of Sonsonate. It will provide LNG storage and regasification services to Energía del Pacífico, which is critical for its operation.
By supplying LNG as an input for the plant, the project will help diversify El Salvador's energy matrix, reduce reliance on heavy fuel oil, and also reduce dependence of electricity imports from the region.
Once in operation, it is expected that this project and the Energía del Pacífico plant will increase the installed energy capacity of El Salvador by 20 percent with the adoption of a new generation technology based on a cleaner and more cost-efficient fuel.
The operation potentially contributes to one of the United Nations Sustainable Development Goals: Affordable and Clean Energy (SDG 7).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About BW LNG
BW LNG provides floating solutions for LNG, owning a fleet of 30 LNG carriers and Floating Storage and Regasification Units, and operating from offices in Oslo, Singapore, Beijing, Manila, Mumbai, Rio and Houston. BW LNG is constantly looking for new solutions to serve its customers and to play a role in the transition to clean and low carbon energy, while striving for Zero Harm to people and the environment. BW LNG is part of the BW Group, a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies. BW controls over 420 vessels transporting oil, gas and dry commodities, with its 190 LNG and LPG ships constituting the largest gas fleet in the world. In the renewables space, the group has investments in solar, wind, batteries, biofuels and water treatment. BW Group’s mission is “to deliver energy for the world today, and to find solutions for tomorrow”.
We are innovators building a sustainable world. Invenergy and its affiliated companies develop, own, and operate large-scale sustainable energy generation and storage facilities in the Americas, Europe and Asia. Invenergy's home office is located in Chicago, and it has regional development offices in the United States, Canada, Mexico, Colombia, Japan, Poland and Scotland. Invenergy has successfully developed more than 27,000 megawatts of projects that are in operation, construction or contracted, including wind, solar, and natural gas power generation facilities as well as advanced energy storage projects.