K&M has been retained by WEB Aruba N.V., the island’s main power producer, to review the Business Case for an LNG-to-Power project.

Utilities Aruba N.V. is gearing up to develop an LNG-to-Power project to help reduce the cost of electricity and pollution from HFO-fueled power plants. As an advisor to WEB, K&M is performing an independent review of the Business Case to ensure consistency and coherency throughout the document, as well as a review and audit of the economic and financial models used. If this Business Case demonstrates the case for switching from HFO to LNG, K&M is expected to continue assisting with the development of the LNG-to-Power project for Aruba.

K&M’s Managing Director of Technical Services, Lenny Golbin, will be leading the firm’s upcoming work on the 120 MW IPP in Guam. K&M will be sub-contractor to Stanley Consultants engaged to provide engineering and technical services to the Guam Power Authority (GPA). The project consists of a 120 MW plant that will burn ultra-low-sulphur diesel (ULSD) and will later convert to Liquefied Natural Gas (LNG). As K&M’s lead advisor on the project, Mr. Golbin will be providing transaction advisory services, conducting project structuring, organizing the competitive bidding process, and assisting the GPA in negotiations with the selected IPP sponsor to bring the project to financial close.

The South Jamaica Power Company, a subsidiary of Jamaica Public Service Company Limited (JPS), recently signed a US$330 million deal bringing the 190 MW LNG to-Power project in Old Harbour Bay, Jamaica to a financial close. K&M was retained by the group of lenders as Technical Advisor to perform due diligence services throughout the loan appraisal and negotiation process.  K&M will continue to perform Technical Advisory services during the construction and commissioning stages. The 190 MW plant will use Liquefied Natural Gas (LNG) supplied by New Fortress Energy (NFE), and will sell electricity to JPS under a long-term Power Purchase Agreement (PPA).  Project finance debt was provided by a syndicate of local banks and financial institutions led by the National Commercial Bank of Jamaica.

The offshore LNG regasification terminal and a linked gas-fired combined-cycle project in Chile, collectively known as Octopus, has reached financial closure.  K&M was engaged by one of the equity investors to provide technical and commercial due diligence, including review of all major project agreements, and an analysis of the Chilean electricity market, and technical design and feasibility. Located in Concepción Bay, the Octopus floating LNG terminal and regasification plant is expected to come online in 2019 with a capacity of 423 million cubic feet a day. The regassified LNG will be used as fuel for the El Campesino 600 MW gas-fired combined cycle power plant in the Biobio region. The sponsors are Andes Mining Company, EDF and Cheniere.   The lenders provided $850 million in debt financing to complete the US$1.2 billion investment required to by the project.

Source: Power Finance & Risk, January 5, 2017

K&M was retained by the prospective lenders to a 190 MW combined cycle gas plant in the Caribbean to perform financial model review services. The plant will use gas supplied through a long-term Gas Supply Agreement (GSA) and produced by regasifying Liquefied Natural Gas (LNG) using a Floating Storage and Regasification Unit (FSRU). K&M will ensure reasonableness of the assumptions on technical input variables contained in the financial model, consistency of the financial model with the contractual obligations detailed in the project agreements, propose alternative assumptions to make the financial model consistent with project agreements, and recommend sensitivities for key variables.