EDP to sign LNG purchase agreement
Energia del Pacifico (EDP) is set to sign a purchase agreement with an undisclosed oil and gas company at the end of July for the supply of LNG to a power plant in the Central American country of El Salvador.
EDP, a venture between Quantum Energias Limpias and Waertsilae Oyj of Finland, won a tender to build the power plant at the port of Acajutla. If the agreement goes through, the power plant will be fuelled by 500 000 tpa of LNG for a period of 20 years from 2018, when commercial operations are due to begin at the plant.
Alejandro Alle, CEO of Quantum, said that EDP was considering two offers, which will be concluded at the end of July when the company opts for its preferred choice.
In the face of the rapidly rising cost of oil, El Salvador, among other Central American companies, is looking at reducing reliance on diesel and fuel oil by replacing its usage with that of LNG.
The project to supply LNG is being supported by the World bank’s private lending arm, International Finance Corp.
Edited from various sources by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/07072014/energia_del_pacifico_plans_to_sign_lng_purchase_agreement_922/
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