Porto de Sergipe LNG Power Plant
The project, located in the State of Sergipe in the Northeastern part of Brazil, consists of the design, construction and operation of a 1516 MW combined cycle natural gas fired power plant, a 33km transmission line and associated facilities – including a floating storage regasification unit (FSRU), a submarine gas pipeline, and water intake as well as outflow pipes (the “Project”). The total Project cost is approximately US$1.8 billion. It is anticipated that the IDB/IIC financing will consist of a combination of Brazilian Reais and US Dollar financing for an amount of US Dollar 288 million equivalent.
IIC and the Inter-American Development Bank Group will provide long term financing in Brazilian Reais, which is not available in the market. The plant will be the largest thermal power plant in South America. The plant will increase firm energy capacity in Brazil and will help to reduce the carbon emission by displacing carbon intensive plants fueled by oil and coal.
CELSE Centrais Elétricas de Sergipe S.A. (“CELSE” or the “Sponsor”) is developing the Power Plant Port of Sergipe I (“The Project”), a greenfield gas-fired combined cycle thermal power plant and associated infrastructure. CELSE was created in 2015 by EBRASIL- Eletricidade do Brasil and Golar Power (a joint-venture between Golar LNG and Stonepeak Infrastructure Partners).
The Project consists of a 1,500 MW combined-cycle power plant using three GE 7HA.02 gas turbines (GTs) with corresponding Heat Recovery Steam Generators (HRSG) and one steam turbine (ST). It will be connected to the grid via a 34.2 km double circuit 500-kV transmission line (TL) and air-insulated connection bay linking to an existing substation with potential to receive up to 3,000 MW. The Project further includes a fully dedicated chartered floating storage and regasification unit (FSRU) with a storage capacity of 170,000 m3 and a liquefied natural gas (LNG) regasification capacity of up to 14 million m3/day with a Submerged Soft Yoke (SSY) mooring structure. The FRSU will be located 6.5 km offshore and will connect to the power plant via an 18-inch diameter offshore and onshore gas pipeline to transfer the regasified LNG (RLNG) from the FSRU to the combined-cycle power plant. Seawater cooling towers will be used for the condenser cooling. The water intake and cooling water discharge are located offshore, and are connected to the power plant with pipelines that follow routing along to the RLNG pipeline with a seawater pumping station located on-shore. The power plant will be constructed on a 511,622m² site located in the Municipality of Barra dos Coqueiros, approximately 20km from Aracaju, the capital of Sergipe State, in northeastern Brazil.
The Project is potentially the first of three gas-fired power plants to be developed by CELSE’s Sponsors at the site. As per initial studies, CELSE’s Sponsors intends to pursue development of two additional gas-fired plants within the same site area, for a total of approximately 3,000 MW of generating capacity although timing of future developments has yet to be determined. The FSRU, named “Golar Nanook”, is a new FSRU with a regasification capacity of 14 million m3/ day, currently under construction at the Samsung Heavy Industries (SHI) shipyard. LNG delivery to the FSRU will be through Ship-to-Ship (STS) process. The FSRU is being chartered to the project by Golar Power, one of the Project Sponsors. The submerged pipeline will lie on the seabed except for the nearshore portion which will be buried. Once past the shoreline the pipeline continues for a distance of 1.5 km and terminates at a gate which has three branches (Porto de Sergipe I and two future facilities).
General Electric (GE) is under a turnkey Engineer Procure Construct (EPC) contract to provide the power plant, the 34.2-km transmission line, the substation expansion, and the sea-water intake/discharge infrastructure for the power plant’s cooling requirements. The installation of the SSY and the construction of the gas pipeline will be contracted under separate EPC contract with Sapura Energy. For the operational phase of the Project, CELSE has selected GE as the operations and maintenance (O&M) contractor for the power plant and GOLAR LNG as the O&M operator for the FRSU.
The TL will have a 70-meter wide right-of-way (ROW) with approximately 60 towers, and will cross the municipalities of Barra dos Coqueiros (site of the power plant), Santo Amaro das Brotas, Laranjeiras and Nossa Senhora do Socorro (site of the CHESF’s Jardim Substation and the proposed CELSE’ bay). The site of the power plant had previously been cleared and prepared to serve as an industrial site and is located near the State Road SE-100 and 1.2 km from Praia do Jatoba, on the Atlantic Ocean, near the Community of Praia do Jatoba. The power plant site is separated from the Community of Praia do Jatoba by the Wind Farm Barra dos Coqueiros. An existing marine terminal “Terminal Maritimo Inacio Barbosa (TMIB)” is located adjacent, and south/southwest of the power plant site. The TMIB will be used to receive large pieces of equipment for the project. State road SE-100 is located immediately to the west of the power plant site and provides a connection to local communities including the City of Aracaju.
The project will operate as a backup base load power plant and is expected to dispatch to the national grid between 30-50% of the time, as required by the Electric System National Operator (ONS – Operador Nacional do Sistema Eletrico). The power plant is currently under construction with start of operation scheduled for January, 2020. The FSRU conversion is expected to be completed by the second semester of 2018 and will arrive at the site during the first quarter of 2019. Total project cost is estimated at US$ 1.8 billion, and IIC proposed investment in the project is up to US$ 288 million A loan (IIC US$38 million, China Fund US$50 million and IDB US$200 million). Site preparation started in February 2017.