Wednesday, 24 February 2021 20:59

Inter-American Development Bank invests in energy diversification in El Salvador

Written by Dinero Staff

IDB Invest, a member of the IDB Group, structured a financial package for $128.3 million to finance a liquefied natural gas (LNG) storage, and regasification project to be executed in El Salvador.

The 378 MW plant, located in the port of Acajutla in the Department of Sonsonate, will be the first plant of its kind to be built in Central America's Northern Triangle.

The project, which is scheduled to begin operations this 2021, will introduce natural gas into El Salvador's energy matrix, reducing its dependence on traditional fossil fuels and electricity imports. The plant is expected to increase the country's energy capacity by 30%.

This project will be developed by Invenergy Investment Company LLC (Invenergy), a U.S. global energy developer, and BW Gas Ltd. (BW Gas), one of the world's leading shipping companies in the tanker, gas and offshore segments.

The project aims to purchase, and retrofit an LNG tanker into a floating storage and regasification unit for the exclusive use of Energía del Pacífico's 378 MW plant, which will be the first natural gas plant in the Northern Triangle, also financed by IDB Invest.

The plant will provide energy to El Salvador's seven electricity distribution companies for the next 20 years, significantly reducing the country's electricity costs, to benefit the population.

Last modified on Wednesday, 24 February 2021 21:04