K&M Advisors has added a seventh island to the list of island nations that request K&M’s advice on their transition from Diesel to natural gas.  K&M has been engaged to support the Government of São Tomé and Príncipe (GoSTP) in its transition from diesel power generation to more reliable, cost-effective, and lower-emission natural gas power generation. Funded by the World Bank, the national Project Fiduciary and Administrative Agency (AFAP) commissioned K&M to carry out a feasibility study on liquefied natural gas (LNG)-based electricity generation solutions.

The assignment consists of two phases. In the first phase, K&M is evaluating the technical and economic viability of various LNG-to-power options. This includes assessing gas demand and power generation needs, identifying potential LNG supply sources, and analyzing marine transit logistics, terminal siting, and regasification infrastructure. The team is also developing preliminary configuration scenarios for LNG import and power generation, estimating capital expenditures, and calculating levelized costs to compare LNG to alternative generation options.

Phase II will support GoSTP in procuring the recommended LNG solution. This phase will involve developing a procurement strategy, defining the business model, identifying institutional and contractual arrangements, and preparing the scope of work for LNG supply and infrastructure development.