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IDB structures finance for BW LNG El Salvador FSRU

TAGS: Americas LNG
IDB Invest, a multilateral development bank and member of the IDB Group, has structured a $128.3m financing package to support investment in a floating storage and regasification unit (FSRU) to be installed in El Salvador by Invenergy, a US global energy developer, and BW LNG, an owner and operator of liquefied natural gas (LNG) tankers and regasification and floating storage units.

The project acquired an LNG tanker that is being converted into an FSRU with 137,000 cubic metres of gross storage capacity. The FSRU will be for the exclusive use of the 378 MW Energia del Pacifico project, the first natural gas plant in the Northern Triangle (Guatemala, Honduras and El Salvador).

The financial package has a 15-year term and consists of an IDB Invest $85.8m and a $42.5m loan from the China Cofinancing Fund for Latin America and the Caribbean, granted to FSRU Ltda. de CV in El Salvador.

The vessel will be anchored 1.2 km off the coast of the Port of Acajutla, El Salvador and will provide LNG storage and regasification services to Energía del Pacífico, which is essential for its operation.

By supplying LNG as an input for the plant, the project will help diversify the Central American country's energy matrix, reduce dependence on heavy fuel oil, and also reduce reliance on electricity imports from the region.

Once in operation, this initiative and the Energía del Pacífico plant are expected to increase El Salvador's installed energy capacity by 20% with the adoption of a new generation technology based on a cleaner and more cost-effective fuel.

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