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Wärtsilä to supply 40 MW gas-fired plant to Argentina

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LNG Industry,

Wärtsilä Corp. has announced that it has reached an agreement to supply a 40 MW Smart Power Generation plant to Mendoza, Argentina, for a special purpose company owned by Grupo Galileo, Methax S.A. The order was booked in 4Q16, is valued at approximately €25 million, and includes Wärtsilä 34SG engines running on natural gas.

CAMMESA, the national grid system operator, awarded the project to Methax with a 10-year fixed fee and gas sale contract, on behalf of the Ministry of Energy. The Ministry is aiming to strengthen the national grid in order to provide reliable power to Argentina’s population and industry. This new plant will generate electricity for approximately 15 000 households.

Other companies from Grupo Galileo will provide natural gas for the plant by buying it from producers that are currently flaring the gas in the Malargüe region. This gas will be liquefied at the well-head by mobile Cryobox® LNG Production Stations, before being transported over road via Virtual Pipeline® from Malargüe region to Anchoris. Once at Anchoris, it will be regasified on site.

By liquefying the gas at the well-head, and then transporting and regasifying the LNG, Grupo Galileo will be introducing its proprietary Gas 3.0® technologies on a massive scale. These will allow Argentina’s upstream producers to meet demand through a system of natural gas distribution without having to use conventional pipelines.

Osvaldo Del Campo, President and CEO at Grupo Galileo, said: “In addition to providing electricity to the households in Malargüe region, our LNG Virtual Pipeline between the well and the power plant makes this project economically sound and allows us to utilise our Gas 3.0 solutions in mobile LNG technology to address the impact of the flaring.”

Luiz Felipe Carvalho, Business Development manager at Wärtsilä, added: “This power plant will increase the electrification ratio in the region and will add reliability to the existing system. We are able to deliver the power plant quickly, which was very important for the customer, in addition to our superior efficiency, EPC capability and life cycle support that we provide.”

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