Page 6 - AsiaElec Week 33

AsiaElec GAS-FIRED GENERATION AsiaElec

Chinese company to buy stake

in GNA’s LNG-to-power project

CHINA CHINA’S State Power Investment Corp. (SPIC) the value of the deal for GNA-I and GNA-II.
has arranged to buy a stake in Gas Natural Açu They have said, though, that the total cost of
(GNA), Latin America’s largest LNG-to-power establishing the four power-generating TPPs and
project. associated infrastructure may hit $5bn.
Earlier this week, SPIC signed a binding GNA-1 and GNA-II will be part of the Açu
agreement on the purchase with the three part- Gas Hub, a complex that also includes an LNG
ners in the GNA joint venture: Siemens (Ger- regasification terminal in the port of Açu in Rio
many), BP (UK) and Prumo, a private Brazilian de Janeiro State. The terminal, a floating storage
entity controlled by EIG Global Energy Part- and regasification unit (FSRU), will be operated
ners. Under the deal, the Chinese company will by Prumo and supplied with LNG by BP. The
acquire a 33% stake in GNA’s two thermal power vessel will be able to handle the equivalent of
plants (TPPs), both of which are currently under 21mn cubic metres per day of natural gas, and
construction. When complete, the facilities will then transfer the gas to GNA’s existing generating
use regasified LNG delivered to the Açu Gas Hub units, which have a combined capacity of 3,000
to generate electricity. MW. (GNA-I has a capacity of 1,300 MW, while
The parties intend to finalise the binding GNA-II has a capacity of 1,700 MW.) Together,
agreement on the project in the fourth quarter of GNA-I and GNA-II will produce enough elec-
this year. They have also signed a separate accord tricity to supply up to 14mn households in Brazil.
that permits SPIC to participate in future expan- Both of the TPPs are being built by Siemens.
sion projects that will be known as GNA-III and The complex’s generating capacity will rise
GNA-IV. to 6,400 MW after GNA-III and GNA-IV are
As of press time, the parties had not disclosed finished.™

Neptune eyes Eni’s Australian assets

AUSTRALIA NEPTUNE Energy is reportedly the latest party investment bank Citi on the sale, which will be
to express interest in buying Italian major Eni’s held over two rounds and is expected to raise an
Australian oil and gas portfolio. estimated $700-900mn. Blacktip is understood
Neptune will join Macquarie Capital and to account for the bulk of this valuation, given
Beach Energy as frontrunners in the chase to that the field has a long-term gas supply agree-
secure the assets, local daily The Australian ment with domestic buyers.
reported on August 6, noting that other poten- The field’s attraction lies in its long-term
tial suitors included Santos, Cooper Energy and supply contract, which helps to insulate it from
a range of infrastructure investors. global oil and gas price volatility. At the same
Eni’s prized assets include a 10.99% stake time, however, The Australian said industry
in Darwin LNG and the plant’s feedstock field observers viewed Eni’s 15-year supply contract
Bayu-Undan and its wholly owned Blacktip nat- with the Northern Territory government-owned
ural gas field and attached Yelcherr processing Power and Water Corp. as having limited upside,
plant. Eni also owns stakes in four exploration which could make growing earnings a more
licences, including the Joint Petroleum Devel- challenging prospect.
opment Area in the Timor Sea and the unde- Australia’s upstream sector is going through
veloped Evans Shoal gas field, which could be a a shake-up amid the collapse in oil prices ear-
potential backfill for Darwin LNG. lier this year, with developers reining in capital
Reports emerged in May that the Italian expenditure. However, with the industry hav-
major wanted to sell its Australian assets to raise ing just gone through a painful period of writ-
cash amid the coronavirus (COVID-19) driven edowns, investors are once more looking for
global economic downturn, which has seen acquisition opportunities. Woodside said this
international oil and gas prices collapse. week that it was looking for suitable targets now
Eni is understood to be working with that the worst was likely over for the sector.™

P6 www. NEWSBASE .com Week 33 19•August•2020