Denham Capital-backed power firm Ceiba Energy has signed an EPC contract with a consortium of Mitsubishi Power Americas and Consag to develop a 1.6GW LNG-to-power plant in northeastern Brazil.
The project will have a total investment cost of R$5 billion ($1bn), financed by Denham Capital’s Equity Fund with debt raised from local sources.
The plant – located within the Ceará Free Trade Zone, Ceará state – will be equipped with 4 x gas-fired Mitsubishi M501JAC turbines, supplied and commissioned by Mitsubishi Power.
The power plant will be connected to the grid at the Pecém II substation via a 6 km 500kV transmission line set to be built by Consag.
Consag is also responsible for the engineering work and the installation of the turbines and other equipment. The company in November (2022) signed a 15-year power capacity reserve agreement with the Brazilian power system clearinghouse, the Electrical Energy Commercialization Chamber (CCEE).
Gas to supply the project will come from a floating storage and regasification unit in the Port of Pecém. The project is scheduled to become operational on 1 July 2026.