Opportunities Related to the New LNG Terminal in Uruguay
One of the most important infrastructure projects in Uruguay is the LNG regasification terminal GNL del Plata. The terminal will have a breakwater, a marine gas pipeline, and a floating storage and regasification unit. The project is located in Punta de Sayago, Montevideo and should be fully-operational in early 2019.
The terminal will be developed with a 6km-long access channel that will be connected to the Port of Montevideo. The project has a total cost of $1.3 billion to $1.5 billion with a lifespan of 15 years. The ability to move LNG volumes across the region will allow for more efficient movement of retail power. Gas-fired power generation will also lower costs for industry participants longer-term via more competitive power purchase agreements (PPA).
The development of more LNG in Uruguay can also act as a hedge for a potential slowdown in the country’s renewable sector. Competition from Argentina and Chile for investments in renewables will make the renewable energy projects in Uruguay relatively less attractive. The new LNG terminal will support spending and economic activity in the domestic sector over the next several years, offsetting slower growth in renewables.
Investment opportunities related to GNL del Plata include financing of LNG supply and storage contracts, trade finance for refined products moving through the port, and we expect new financing needs for shipowners and vessel operators to increase over the next 12 to 18 months. Latam Energy Advisors can help investors evaluate the underlying contracts and collateral, assess the creditworthiness and event risk of borrowers, and set up tax-efficient financing structures to facilitate the transaction.
https://www.latamenergyadvisors.com/lng-terminal-uruguay-latam-energy-advisors/
The terminal will be developed with a 6km-long access channel that will be connected to the Port of Montevideo. The project has a total cost of $1.3 billion to $1.5 billion with a lifespan of 15 years. The ability to move LNG volumes across the region will allow for more efficient movement of retail power. Gas-fired power generation will also lower costs for industry participants longer-term via more competitive power purchase agreements (PPA).
The development of more LNG in Uruguay can also act as a hedge for a potential slowdown in the country’s renewable sector. Competition from Argentina and Chile for investments in renewables will make the renewable energy projects in Uruguay relatively less attractive. The new LNG terminal will support spending and economic activity in the domestic sector over the next several years, offsetting slower growth in renewables.
Investment opportunities related to GNL del Plata include financing of LNG supply and storage contracts, trade finance for refined products moving through the port, and we expect new financing needs for shipowners and vessel operators to increase over the next 12 to 18 months. Latam Energy Advisors can help investors evaluate the underlying contracts and collateral, assess the creditworthiness and event risk of borrowers, and set up tax-efficient financing structures to facilitate the transaction.
https://www.latamenergyadvisors.com/lng-terminal-uruguay-latam-energy-advisors/
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