Golar Power reaches Financial Closing on 1.5GW Sergipe Power Project
April 19 2018 - 7:41AM
April 19, 2018 - Golar LNG Limited ("Golar")
announces today that Golar Power Limited ("Golar Power"), a joint
venture with Stonepeak Infrastructure Partners, has reached
financial closing on the 1.5GW Porto de Sergipe I Power Project
(the "Project" or "Sergipe TPP"). Located in Sergipe, NNE of
Brazil, the Project will be the largest and most efficient
thermoelectric power plant in Latin America and the Caribbean upon
its completion.
CELSE (Centrais Elétricas de Sergipe S.A.), the
Project company 50% controlled by Golar Power, will receive
US$1.340 billion under a non-recourse project financing structure.
Total proceeds from the financing will be used to fund remaining
capital expenditures of the Project, including: the 1.5GW Power
Plant, a dedicated 34km 500KV high-voltage transmission line, and
associated gas pipeline and mooring infrastructure required for the
integrated LNG import terminal facility.
Total Project capex including taxes and
financing costs is estimated at US$1.740 billion. The total equity
contribution of approximately US$400 million has been fully paid-in
and includes US$123 million in cash reserve accounts that were
pre-funded by the project sponsors. The power project will generate
a forecasted annual EBITDA of US$323 million at current exchange
rates, prior to any dispatch. Commencement of power station
commercial operations is scheduled for January 1st, 2020. Payments
under the executed PPA are inflation indexed and provide for
pass-through of fuel costs to the PPA counterparties.
Golar Power CEO Eduardo Antonello commented:
"This innovative financing represents a key milestone in the
development of Golar Power infrastructure projects globally,
establishing a precedent for financing in local currency in support
of projects receiving revenues in local currency which are adjusted
based on inflation. The Project bond issuance has attracted the
interest of multiple international investors and opens a new
horizon of opportunities for infrastructure development. With this
experience, we believe Golar Power is uniquely positioned to help
deliver these opportunities globally to new and underserved
customers and geographies.
With the Sergipe TPP we have developed a fully
flexible and highly efficient natural gas fired plant that will
enable Brazil to increase its energy security while continuing to
expand its development of renewable energy resources, including
solar and wind."
In connection with financial close of the
Project, Golar Power has also executed final agreements with CELSE
to charter the Golar Nanook, a fully customized new-build 170,000m3
FSRU, for 26 years. The annual EBITDA contribution for Golar Power
is currently projected to be approximately US$41 million, with
annual escalation indexed to US-CPI, and upside potential for Golar
Power through use of the remaining two-thirds of FSRU capacity not
utilized by the Project. The terminal is located in a strategic
entry point to the NNE of Brazil, within 20km of the main gas
distribution network, and has the potential to unlock future LNG
distribution opportunities into Brazil.
FORWARD LOOKING STATEMENTS
This press release contains certain
forward-looking statements concerning future events and the
operations, performance and financial condition of Golar and its
joint ventures. Forward-looking statements include, without
limitation, any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain
the words "believe", "anticipate", "expect", "estimate", "project",
"will be", "will continue", "will likely result", "plan", "intend"
or words or phrases of similar meanings. These statements involve
known and unknown risks and are based upon a number of assumptions
and estimates that are inherently subject to significant
uncertainties and contingencies, many of which are beyond the
control of Golar and its partners. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Important factors that could cause actual results
to differ materially include, but are not limited to, those factors
listed from time to time in the reports and other documents Golar
files with the United States Securities and Exchange
Commission.
New factors emerge from time to time, and it is
not possible for Golar to predict all of these factors. Further,
Golar cannot assess the impact of each such factor on its business
or the extent to which any factor, or combination of factors, may
cause actual results to be materially different from those
contained in any forward-looking statement. Golar does not intend
to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Golar's
expectations with respect thereto or any change in events,
conditions or circumstances on which any such statement is
based.
Hamilton, Bermuda
19 April, 2018
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan
Golar LNG (NASDAQ:GLNG)
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