PRUMO, BP, SIEMENS PARTNER SPIC ON BRAZIL ENERGY PROJECTS

KUALA LUMPUR, Aug 11 -- Prumo, a private Brazilian company controlled by EIG Global Energy Partners, bp and Siemens have signed a binding agreement with SPIC Brasil whereby, SPIC initially acquires 33 per cent of the GNA I and GNA II LNG-to-power projects, located in Port of Açu, Rio de Janeiro.

SPIC Brasil's contribution to this partnership is centred on its expertise in operation and project management strategy in Brazil.

In addition, bp will contribute its global portfolio of LNG acting as a key integrated and innovative gas supplier while Prumo contributes the entire port infrastructure, operations, project development and integration.  

Meanwhile, Siemens – via its financing arm, Siemens Financial Services, and in close cooperation with Siemens Energy – will contribute capital, innovative technology and expertise managing similar projects. 

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 LNG and domestic gas from Brazil’s vast pre-salt reserves.

The closing of the agreement, scheduled for 2020 fourth quarter, is subject to fulfillment of certain conditions precedent usual to this type of transaction, among others, according to a statement.

GNA I and GNA II are the largest gas-to-power projects in Latin America, with 3 GW of installed capacity — enough to supply energy for up to 14 million households. The complex also includes an LNG terminal with total capacity of 21 million m3/ day.

The estimated total planned investment in the GNA gas and power complex is approximately US$5 billion. (US$1 = RM4.20)

-- BERNAMA