According to the Panama Canal Authority, NG Power only has permission to build a 130 MW plant, so it will have to go through a new procedure if it expects to develop the 670 MW plant, as planned from the beginning.
The permit requested by Panama NG Power and approved by the Canal Board in 2011, is for two generators of up to 45 MW each and a third steam generator of up to 40 MW, which together total 130 MW.
The U.S. government approved up to $350 million to finance part of the construction of the liquefied natural gas (LNG) power generation plant EDP in Acajutla, El Salvador.
The U.S. government, through the Overseas Private Investment Corporation (OPIC), approved the financing on March 20, 2019, according to the U.S. Embassy in El Salvador.
In El Salvador, Energía del Pacifico has announced that it has met the requirements to obtain financing, and that it will start construction of the plant in the third quarter of the year.
After requesting an extension to postpone the date of entry into operations, authorities at AES Panama confirmed that the plant will begin operations on September 1.
Construction of the plant started in May 2016 and will have three generators, three gas turbines and one steam turbine, reaching a total installed capacity of 381 MW.
Panama NG Power has been given authorization to postpone until 2020 the start-up of operations of the natural gas-based generation plant to be built in Cristóbal, in the province of Colón.
The energy supply contracts signed between Panama NG Power and the energy distributors Edemet, Ensa and Edechi were modified so that the start-up of the natural gas plant could be postponed until 2020.
AES and Engie have agreed to create a joint venture to market and sell liquefied natural gas to third parties in Central America.
The new company will use infrastructure of the Costa Norte LNG Terminal, which is currently under construction in Colón, Panama, owned 50/50 by AES and Inversiones Bahia.
The total capacity of Costa Norte LNG Terminal is approximately 1.5 million metric tons per year (mtpa), of which 25% will go to AES Colón's 380 MW combined cycle plant (CCGT), currently under construction at the same site.
The ASEP has reactivated the license granted to Panama NG Power to build and operate a 670 MW generating plant based on natural gas in Cristobal, province of Colon.
The licenseinitially granted in 2011, was canceledduring the current administration of the Public Services Authority (ASEP) because of delays in delivering information on Panama NG Power's project financing. Now,"... The appeal on constitutional guarantees granted by the Supreme Court to the company has forced the Asep to declare the license valid."
The 380 MW natural gas plant to be built by AES in Panama promises to change the country's energy matrix, and the way energy is generated and distributed in Central America.
The economic flow that has already started with the construction of the gas plant in the province of Colon will be felt not only in the energy sector in Panama, which could become an energy generating and distribution hub in the region, but also in other productive sectors that will benefit from greater stability in energy costs and generate greater dynamism in logistics and shipping.
The company Engie has also announced the construction of a plant with storage capacity of 180,000 cubic meters for the generation of 350 MW.
From a statement issued by Engie:
ENGIE announces the signature of a binding Memorandum of Understanding with Gas Natural Atlántico, under which ENGIE will supply up to 400,000 tonnes of LNG per year from 2018 on a 10-year period at Costa Norte LNG Terminal in the Colon Province, Panama.
Two social welfare institutions are considering whether to invest $90 million in gas generation plants to sell electricity to the National Electric Power Company.
In order to cover the increased demand which arises in seasons of highest energy consumption, the National Institute of Retirement and Pensions for Employees and Officials of the Executive Branch (INJUPEMP) and the Honduran Social Security Institute are considering investing in power generation based on gas. The investment would mean allocating about $90 million to the purchase of mobile plants to sell supplies to the National Electric Power Company.
The National Public Services Authority has revoked the final license granted to Panama NG Power for the construction and operation of a power plant in the province of Colón.
From the order given by the National Authority for Public Services in Panama (ASEP):
It is resolved:
"... FIRST: DECLARE CANCELED the Final License granted to the company NG POWER PANAMA, SA, registered in the Public Registry on Listing 691,187 of Document 1725036 of the Microfilm Section (Mercantile), by Resolution No.7333 AN-Elec of 6 May 2014, as amended by Resolution No.7369 AN-Elec on May 21, 2014, to develop a project for thermal generation using natural gas for electricity generation, called Telfers, to be located in the town of Cristobal, in the district and province of Colon, with an installed capacity of 670 MW. "
Pacific Energy has announced that it has signed the lease contract for the space which will be used for its plant in the port of Acajutla and has completed the EIS.
Energía del Pacifico (EDP) announced that progress that has been made on three specific areas: the environmental impact study, holding an day for providing information and public consultation with the residents of the area where the plant will be located, and the signing of the contract for lease of the space to be used in the Port of Acajutla.
The Public Services Authority has denied extension request by Panamá NG Power S.A. to submit information on funding for the 670 MW plant.
Prensa.com reports that "... The requirement for 'financial closure', or definition of project financing, must be presented on October 31st this year, but the company asked the Asep, on 27 August, for an extension for its submission. "
The possibility that Guatemala has the necessary amount of natural gas for power generation attracts interest from various sectors.
A few weeks ago City Petén discovered a gas condensate reservoir from which, once refined, superior and regular gasoline and diesel and gas could be obtained. At the moment 250 barrels per day of natural gas are extracted and although this is not enough for industrialization, it could be a sign that there is more in the areas that are to be explored, explained Jose Paez company representative.
The company will sell power at 13/100 a kilowatt hour through a contract with a term from March 1, 2017 to February 29, 2036.
Prensa.com reports that "the company will sell power at 13 cents per kilowatt hour. This was the only offer received in the tender by Etesa whose parameters were criticized by business groups, after two addenda were included establishing that proposals could only be made by companies that posses a permanent or temporary license. "