Guam Power Authority (GPA) procured a 198 MW Ukudu combined cycle power plant on an IPP basis. The plant is expected to enter commercial operation in third quarter of 2025 and will initially operate on Ultra Low Sulfur Diesel. GPA intends to develop an LNG terminal to convert the Ukudu plant to operate on natural gas. K&M was retained as a lead consultant to assist GPA in conducting LNG terminal technical and commercial feasibility analysis, and, if proven feasible, to assist in procurement of the LNG terminal and negotiating as gas supply agreement.

Currently, K&M works on the Phase 1 of the project, which includes such tasks as estimating the LNG demand, analyzing source and delivery options, selecting the preferred site and configuration for the LNG terminal and developing terminal conceptual design and cost estimate. The scope of work also includes analysis of the possible business models, financial analysis, determining project feasibility and developing recommendations on whether to proceed with procurement of the LNG terminal. If GPA decides to proceed, K&M will assist GPA in procurement of the LNG terminal and LNG, negotiating a gas supply agreement, and overseeing work during the LNG terminal implementation.

K&M was retained as transaction advisor to the Guam Power Authority (GPA) on the procurement of an 180 MW LNG/USLD-to-Power transaction. K&M is subcontracted by lead firm—Stanley Consultants, to provide financial and commercial advisory services to the GPA. The project consists of a 180 MW plant that will initially burn ultra-low-sulphur diesel (ULSD) and will later convert to Liquefied Natural Gas (LNG). The project is divided in two phases. The initial phase included preparing, procuring and negotiation an IPP transaction for an 180 MW power plant that will be fueled with ULSD). The second phase includes preparing, procuring and negotiating a transaction for the development of LNG receiving terminal, regassification unit, and storage facilities. K&M’s services in Phase I included: advising GPA on the transaction structure, drafting prequalification documents, advising throughout prequalification process, drafting request for proposals, drafting sections of project agreements, evaluating proposals, and supporting during negotiations with the preferred bidder. K&M’s services in Phase II will include advising on the transaction structure for the LNG facilities.