The project (the “Project”) involves the construction and operation of 1) a 378-megawatt (MW) thermal power plant at the port of Acajutla in the Department of Sonsonate in El Salvador (the “Power Plant”), 2) a marine terminal, consisting of a floating storage and regasification unit (the “FSRU”) permanently moored through a modified spread mooring system for liquified natural gas (LNG) delivery, storage, and regasification, as well as a natural gas pipeline that will run from the FSRU to the power plant (the “Pipeline”) and 3) the construction of a 44 km, 230 kilovolt (kV) transmission line and related substations to connect the power plant to the electrical grid of El Salvador. The Power Plant will be located in a brownfield port and industrial area in the municipality of Acajutla, in premises secured under a 24-year lease agreement with the Executive Commission of the Port of Acajutla (CEPA), who owns and manages the port. Financing from IDB Invest will be direct to Energía del Pacífico, Ltda. de C.V., who will develop the Project. The FSRU will not be part of this financing. The total Project Cost is estimated at USD 850,000,000, which will be co-financed by IDB Invest through an 18-year long-term loan of up to USD 115,000,000. IDB Invest will seek approval from China Fund for USD 50,000,000.
The Power Plant will consist of 19 Wärtsilä 18V50SG internal combustion reciprocating engines with capacity of 18.9 MW each, and a combined steam cycle system that will use the exhaust gases of the engines to produce additional 26 MW. The LNG marine import terminal consist of a Restricted Catenary Mooring (RCM) system and a dedicated and chartered FSRU located approximately 1.2 km offshore. LNG carriers will moor directly to the FSRU with flexible hoses utilized to transfer LNG. The FSRU will receive approximately six LNG shipments per year. A combination of a flexible riser and a subsea gas pipeline will transfer the re-gasified natural gas from the FSRU to the onshore power plant. The transmission line between the Electricity Transmission Company of El Salvador (ETESAL) substations of Acajutla and Ahuachapán will have approximately 139 towers and a 38-meter wide right-of-way (ROW). The Project involves the construction of a switchyard inside the project site in the port of Acajutla, (the EDP Substation), another interconnection at 115 kilovolt (kV) between that switchyard and the ETESAL Acajutla Substation and the expansion of both ETESAL substations.
The Project is expected to be the lowest cost thermal generator in El Salvador, where the country is heavily reliant on imported HFO-fired generators for its dispatched power, and to provide reliable energy, reduced carbon emissions and increased foreign investment.