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
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Golar LNG via Globenewswire
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