Puerto Rico plans LNG tender as FSRU permitting progresses

14 May 2014  |  By: Ruth Liao

The Puerto Rico Electric Power Authority (PREPA) is expected to launch a supply tender for its planned floating storage and regasification unit (FSRU) which is expected to start between late 2015 and early 2016.

The 150,900cbm FSRU would be provided by US-based Excelerate Energy, based offshore southern Puerto Rico between Salinas and Guyama. An existing vessel from Excelerate’s fleet would be provided to accommodate imports for PREPA’s Aguirre Power Plant Complex.

The tender, which is due to be formally launched in June, could call for supply of 900,000 tonnes per annum (tpa) or up to 1mtpa over a 10-year timeframe, according to market sources.

A spokesperson for PREPA did not respond to requests for comment before publication.

The import tender would cover demand from the Aguirre Power complex, which has a total capacity of 1,452MW: 900MW in a thermoelectric facility; and 592MW from a combined cycle gas turbine power plant. However, further conversion to natural gas-fired generation from diesel generators is expected to provide more demand to underpin the supply tender, ICIS understands. 

Excelerate announced on 12 May that progress has been made on the required regulatory approvals for the FSRU, which is known as the Aguirre Offshore GasPort Project.

Excelerate is expected to receive some of its final permits by mid-2015 from the US Federal Energy Regulatory Commission (FERC), according to a recent schedule published by the agency. An environmental impact statement (EIS) is due on 19 December, while the 90-day federal authorisation is scheduled for 19 March 2015.

Excelerate also said that the project received a recommendation from the US Coast Guard, finding the waterway around Jobos Bay in agreement with the project proposal.

Pending the final FERC approvals, the project could be in service as early as the fourth quarter of 2015.

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