Page 15 - LatAmOil Week 02 2022

LatAmOil NEWS IN BRIEF LatAmOil

sources, while the FSRU will open up possi-
bilities to bring gas to the region supporting
industrial growth and energy transition. Por-
tocem is ideally located to connect to existing
gas pipeline and possible new gas infrastructure
development toward Brazil’s interior regions.
Additionally, existing nearby electrical trans-
mission infrastructure makes the location even
more attractive for a project of this scale.
Portocem’s capacity will be sold to the Brazil-
ian market as a reserve contract, minimising the
risk of system wide blackouts in low hydrology
years. Portocem’s very competitive capacity price
will back up the further expansion of cheap,
renewable energy in Brazil, further contributing
to long-term reductions in the cost of electricity
in Brazil.
As a key new infrastructure development
for the region, the project also has strong sup-
port from Ceará’s state government, the Pecem
“The PIC-SeaOne partnership is a powerful secured worldwide patents on a system which Industrial and Port Complex, and Cegas, the
combination to supply fuel for our power plants transforms the way natural gas and natural gas local gas distribution company.
and our customers in Mexico and throughout liquids (NGL) are processed, stored, and deliv- The project, with a total investment of
The Americas,” said Michael Hood, Chairman ered globally to markets. The technology enables BRL4.2bn (approximately $750mn) will be
and CEO of PIC. “Together, utilising SeaOne’s the delivery of clean fuels to regional markets at financed from Denham Capital’s equity funds
proprietary systems, PIC will execute industry a significant discount to the current cost of fuel and debt to be raised from local sources such as
leading technology solutions to help address in the Caribbean, Central and South America. regional and national development banks as well
the fuel supply and electricity needs of Mexico’s SeaOne aims to remake the energy cost and sup- as capital markets, among others.
citizens, businesses, and government.” SeaOne’s ply picture for the entire region, catalysing new Emilio Vicens, CEO of Ceiba Energy, com-
technical solutions are robust and cutting edge opportunities for economic growth and vitality mented: “We are very pleased to announce the
like no other, and will exceed the single most and improving the lives of millions. success of the Portocem project at auction, which
important part of our future “Emissions and Petróleos Internacionales del Caribe, January 13 when operational will supply 1.6 GW of relia-
Reductions” of carbon footprints throughout 2022 ble capacity to the national grid operator. Our
the globe. entire Houston- and Brazil-based teams worked
“We are very enthusiastic about partnering Ceiba Energy wins PPA diligently for a few years to be in this privileged
with PIC,” SeaOne’s Chairman and CEO, For- position with an asset of this scale and a capacity
rest Hoglund, said. “CGL increases access to for LNG-to-power project PPA of this quality in a market like Brazil. This
affordable, lower emission fuels. These projects asset complements and transforms our expand-
will provide Mexico, and other countries in Cen- in Brazil ing portfolio of infrastructure projects in Brazil
tral and South America, and the Americas with as we look to capitalise on the significant growth
affordable fuels and power, as well as significant Ceiba Energy, a Houston-based power company potential in the Latam region. This fully inte-
carbon emissions reductions, a key component with a focus in Latin American markets, backed grated LNG-to-power Portocem project has the
in achieving sustainability goals.” by Denham Capital, a global sustainable infra- strong support of world-class industry players
About PIC and PICMEX: Petróleos Inter- structure, energy and resources focused invest- and local Brazilian institutions, that are striving
nacionales del Caribe (PIC) is a global company ment firm, is pleased to announce the successful to deliver a reliable and cost-competitive power
based in the USA and internationally. The com- bid of its Portocem project for a 15-year PPA to capacity solution in Northeast Brazil.”
pany develops and operates a variety of strategic build, own and operate a new 1.6 GW power Saurabh Anand, Managing Director of Den-
energy-related operations with its key partner- plant in Brazil. ham’s Sustainable Infrastructure Equity team,
ships globally. PIC is expanding its operational Ceiba Energy’s Portocem project won 30% added: “Brazil is a key market for Denham Cap-
footprint throughout the Americas that will of the total demand offered by ANEEL and the ital where our investments help drive economic
enhance its customer base energy requirements, Ministry of Energy in this first of its kind capac- growth. Our significant investment in the Porto-
and fueling needs throughout 2030 and beyond. ity auction, which took place on December 21, cem project reaffirms our place at the forefront of
Petróleos Internacionales del Caribe Inc., Sucur- 2021. The Portocem LNG-to-Power Project financing the country’s energy sector and com-
sal México (PICMEX) is an affiliate of PIC and is will be installed in the Pecém Industrial and plements our investment in Rio Energy platform
headquartered in Mexico. Port Complex, in the state of Ceará in northeast that currently owns 1.1GW of operating and
About SeaOne™: Houston-based SeaOne Brazil, will be comprised of four gas-fired, sim- under or near construction renewable energy
Holdings, LLC (SeaOne™) is a midstream infra- ple-cycle units with capacity of 1.6 GW and its projects. As Ceiba rapidly continues its ambi-
structure and logistics company that provides a associated Floating Storage and Regasification tious growth in the LatAm region, we look for-
means to deliver and store natural gas and NGLs, Unit (FSRU). ward to continuing our partnership to develop
from wellhead to market, as a liquid gas cargo The Portocem project will supply the much- projects which fuel sustainable economic growth
using through its patented Compressed Gas Liq- needed capacity to back the existing reliance on and advance the energy transition.”
uid (CGL™) system. SeaOne has developed and intermittent energy coming from renewable Ceiba Energy, January 10 2022

Week 02 13•January•2022 www. NEWSBASE .com P15