The Government of São Tomé and Príncipe (GoSTP), with funding from the World Bank, aims to reduce the cost, increase reliability, and reduce emissions from electricity generation in Sao Tome and Principle (STP). The Project Fiduciary and Administrative Agency (AFAP), under the Access to Clean Resilient Electricity Project (ACRE), engaged K&M to conduct a two-phased study to assess the technical and economic feasibility of different LNG-based power generation concepts and, based on that assessment, help GoSTP implement the identified recommendations.

The objective of Phase I is to analyze the technical and economic feasibility of different LNG-based power generation concepts for STP and determine which, if any, are competitive against non-LNG generation options. The analysis will be conducted on behalf of and in close collaboration with STP’s national electricity utility, Empresa de Agua e Electricidade (EMAE). The objective of Phase II is to implement the LNG procurement agenda.

K&M Advisors was engaged to assess the technical and economic feasibility of various LNG-based power generation concepts and support the implementation of the recommended solution. The scope includes four primary tasks: Task 1 involves requesting and reviewing relevant information provided by the client. Task 2 includes analysis of LNG sourcing, shipping, terminal options, and power generation, including evaluation of gas demand and generation requirements, identification of potential LNG supply sources, assessment of candidate sites for the LNG import terminal, and development of preliminary LNG-to-power configuration options. Task 3 focuses on the economic and financial assessment of these options, including Class V capital cost estimates, levelized cost calculations, and comparative analysis. Task 4 involves identifying the preferred terminal configuration, conducting business model analysis, defining the implementation schedule, and preparing the scope of work for Phase II of the study, which will address LNG procurement.