China’s SPIC Buys Stake in Latin America’s Largest LNG Power Plant
Posté le 7 sept. 2020
SPIC acquired the stake from Gas Natural Acu (GNA), which is a Brazilian joint venture made up of BP, Siemens and Prumo Logística.
The project is the largest LNG-fueled power plant in Latin America, and will generate 3GW of electricity, enough to supply 14 million households when both power plants in the complex, known as GNA I and GNA II, enter operation in 2021 and 2023 respectively.
The complex also includes an LNG terminal with the capacity to process 21 million cubic meters per day.
SPIC Brasil, the Brazilian unit of the Chinese company, has also entered an agreement to participate in the future expansion of two other power plant projects, known as GNA III and GNA IV, which are expected to be fueled by a combination of LNG and domestic gas from Brazil’s deep-water fields.
Brazilian law firm Trench Rossi Watanabe, a Baker McKenzie member firm, has acted as local counsel to (SPIC) in the transaction, with a team led by partner José Roberto Martins, and with partner Mauricio Pacheco.
“This was an extremely complex operation, which involved a detailed regulatory assessment of the energy, natural gas and ports sectors, including the analysis of energy purchase and sale contracts in the regulated market, gas supply contracts and aspects related to the LNG terminal and the floating storage and regasification unit, in addition to the involvement in negotiations with major players throughout the COVID-19 pandemic period,” Martins said.