China's Spic Buys Stake in Brazilian Gas-to-Power Projects
Spic Brazil, a unit of China’s State Power Investment Corporation (Spic), will acquire 33% stake in two gas-based power plants in Brazil from Prumo, the companies said in a joint statement on August 10.
Under the agreement, Spic will initially acquire the stake in GNA I and GNA II gas-to-power projects, located in Port of Acu, Rio de Janeiro. Spic has also entered into an agreement to participate in the future expansion projects GNA III and GNA IV, which are expected to be fuelled by a combination of regasified LNG and domestic gas. The closing of the agreement is scheduled for the fourth quarter of 2020.
GNA I and GNA II is the largest gas-to-power project in Latin America, with 3 GW of installed capacity. The complex also includes an LNG terminal with a total capacity of 21mn m3/ day. GNA I, which has an installed capacity of 1.3 GW, is expected to start operations in the first half of 2021. The agreement improves the potential for expansion projects GNA III and GNA IV, the domestic gas hub strategy and renewables projects, the companies said. The estimated total planned investment in the GNA gas and power complex is approximately $5bn.
Prumo is a private Brazilian company controlled by EIG Global Energy Partners, BP and Siemens. Spic Brasil's contribution to this partnership is centered on its expertise in operation and project management strategy in Brazil. Siemens will contribute capital and technology while BP will supply LNG.