Natural Gas Generator in El Salvador

The AES Fonseca project in La Union has invested $14 million of the $970 million required by the 250 MW natural gas power plant.

Monday, December 12, 2011

AES Corporation has announced that it has most of the necessary environmental permits for the project and will participate in the tender for the provision of long-term energy to be held in January 2012.

The original project envisaged by Fonseca AES was a coal-fired operation, but by mid-2010 it announced a change in the design to one based on natural gas, which involved the application of new licenses, bringing the total investment, projected initially at about $500 million to the currently estimated $970 million.

An article in quotes AES's president, Andrew Vesey, who explained that: "The shift from coal to gas was in large part due to competitiveness and reducing the environmental impact. ‘The price is pretty close, but the technology being used is so innovative. In our analysis, gas is a much more competitive option and also does not have all the environmental risks associated with coal'. The executive declined to detail the origin of the natural gas with which the plan will operate, because they are 'strategic decisions'. However, he revealed: '(we will) look for a source worldwide to bring it in liquid form and convert it to gas again using an infrastructure.' "

More on this topic

Gas Plants in Puerto La Union Accepted

May 2012

The new mayor will maintain the ban on power plants using coal or bunker fuel, but accepted those running on clean energy.

The new mayor of the municipality of La Union, Ezequiel Milla, has amended a decree prohibiting the installation of power plants that used coal, liquefied natural gas or any derivation of hydrocarbons as fuel, which was not conducive to investment in the city.

AES Fonseca will not Participate in Power Tender

March 2012

A municipal ordinance in La Union prohibits power plants based on coal or gas meaning that AES will be unable to take part in the tender for 350 MW.

The power generator AES Fonseca will not participate in the bidding for 350 MW for a period of 16 years scheduled for Monday, March 19th due to an ordinance of La Union, which prohibits the construction of power plants based on coal and gas.

AES Seeks Permission for Gas Power Plant in El Salvador

November 2011

The company is working on updating its environmental permits in order to build the plant that will generate energy from natural gas.

The power station will have capacity to generate 550 MW and require an investment of $970 million.

AES has also begun the search for manufacturers and construction companies to help build the plant.

AES Announces $970 million Investment in El Salvador

September 2011

The AES Group has announced its interest in investing in the construction of a generating plant that would operate with natural gas in the province of La Union.

A press release from the Presidency of the Republic of El Salvador reads:

The business group AES, one of the world's largest electric power generators, announced in New York during a meeting with President of the Republic, Mauricio Funes, its interest in investing more than $970 million in the construction of a natural gas generator in the province of La Union.

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