Projects

Porto de Sergipe I Power Project, Barra dos Coqueiros

The Porto de Sergipe I power plant is a 1.5GW natural gas-fired power plant being developed in Barra dos Coqueiros, Brazil.

Project Type
Gas-fired power plant
Location
Barra dos Coqueiros, Brazil
Capacity
1.5GW
Commissioning
January 2020
Developer
Centrais Elétricas de Sergipe (CELSE)
EPC Contractor
GE

The Porto de Sergipe I power plant is a 1.5GW natural gas-fired power plant being developed in Barra dos Coqueiros, Brazil. Upon completion in January 2020, it will be the biggest gas-fired power plant in the region.

The project includes the construction of an integrated floating storage and regasification unit (FSRU) for natural gas, along with an associated gas pipeline and mooring infrastructure. It also comprises a dedicated 33km-long, 500kV high-voltage transmission line.

Centrais Elétricas de Sergipe (CELSE) is developing the project with an estimated investment of $1.74bn. CELSE was formed in 2015 by Brazilian utility EBRASIL and Golar Power, which is a 50/50 joint venture between Golar LNG and Stonepeak Infrastructure Partners.

Construction of the natural gas-fired power plant started in September 2016 with the laying of the cornerstone. The FSRU is anticipated to reach the site in the first quarter of 2019.

The project is expected to generate 2,500 direct jobs during construction and up to 200 jobs during the operational phase of 25 years. It is expected to provide additional power during dry seasons to meet electricity demand in the region.

Porto de Sergipe I power plant make-up

Being developed on a 511,622m² site, the power plant will be located approximately 10km from Sergipe State’s capital city Aracaju.

The project will feature three GE 7HA gas turbines, a GE steam turbine, a heat recovery steam generator (HRSG), and other related equipment. It is expected to operate with an efficiency of more than 62%.

The 7HA gas turbine technology is capable of delivering full power to the grid in less than 30 minutes and can generate more power with 50% less CO2 emissions.

The power plant will receive natural gas from the FSRU, which will be located 6.5km from the coastline.

“The project is expected to generate 2,500 direct jobs during construction and up to 200 jobs during the operational phase of 25 years.”

The FSRU will have a storage capacity of 170,000m³ of LNG and a regasification capacity of 21 million normal cubic metres per day (MNm3/day). It will feature a submerged soft yoke system (SSY), which will allow for the free rotation of the FSRU and provide connectivity with the gas pipeline to transport fuel to the plant. Tankers / LNG carriers will transport LNG to the FSRU.

CELSE signed an agreement with Golar Power to charter the Golar Nanook FSRU for 25 years for the Sergipe project in October 2016. The FSRU is currently being constructed at the Samsung Heavy Industries shipyard, and will be entirely owned and operated by Golar Power.

LNG supply

CELSE signed a long-term LNG sale and purchase agreement (SPA) with Ocean LNG for the supply of 1.3Mtpa of LNG for the Sergipe project in November 2016. The fuel supply will be made on an ex-ship basis with shipments beginning in 2020.

Qatar Petroleum holds 70% stake in Ocean LNG, while the remaining 30% is held by ExxonMobil.

Power transmission

The transmission system for the Sergipe project will comprise a high-voltage step-up substation, transmission lines, and a bay at an existing substation.

Electricity produced by the power plant will be transmitted by the Porto de Sergipe I substation to the Jardim substation of the National Interconnected System (SIN) through the dedicated transmission line.

The Jardim substation is located in the municipality of Nossa Senhora do Socorro.

Power offtake from Porto de Sergipe I

Sergipe I will deliver power to 26 off-takers for a period of 25 years under various power purchase agreements (PPA) executed by the Brazilian Government in 2015.

The power plant is anticipated to provide 15% of energy demand in the north-east part of the country.

Financing

CELSE raised R$3.4bn ($1.5bn approximately) in financing from a group of banks and multilateral organisations in April 2018.

Goldman Sachs Brazil issued approximately R$3.4bn worth of Brazilian simple non-convertible debentures as part of the transaction, which was insured by SERV (Swiss Export Risk Insurance), the Swiss export credit agency.

CELSE also raised an additional BRL1.3bn in project debt, including $200m from International Finance Corporation (IFC) and a $288m loan from Inter-American Investment Corporation (IIC). The IIC investment includes $38m from IIC, $50m from China Fund, and $200m from IDB.

Contractors involved with Porto de Sergipe I

GE was awarded the engineering, procurement, and construction (EPC) contract for the power plant. The contractual scope also includes the 33km transmission line, substation expansion, and seawater intake / discharge infrastructure for the power plant’s cooling requirements.

GE was also awarded an operations and maintenance (O&M) contract for the power plant along with a Contractual Service Agreement (CSA) for providing long-term maintenance services and parts for the gas and steam turbine generators.

CELSE awarded an EPC contract to Sapura Energy Do Brasil for the gas pipeline of the Sergipe 1 project. Sapura is also responsible for the transportation and installation of the FSRU’s mooring system and hooking-up of the FSRU / riser / umbilical.

Soft yoke and accessories will be supplied by APL and NOV.

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