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Industrials

China's SPIC buys stake in Brazil's LNG-fueled power projects from GNA

RIO DE JANEIRO, Aug 10 (Reuters) - The Brazilian unit of China’s State Power Investment Corporation Limited will acquire a 33% stake in two plants in the largest power project fueled by super-chilled liquefied natural gas (LNG) in Latin America, from Gas Natural Acu (GNA), the companies said in a statement on Monday.

The closing of the deal between SPIC Brasil and GNA, a Brazilian joint venture between BP, Siemens and Prumo Logística, is scheduled for the fourth quarter, subject to the fulfillment of conditions, the companies said. They did not specify how much was paid for the stake.

The combined plants will have 3 gigawatts of installed capacity — enough to supply energy for up to 14 million households, once GNA I and GNA II start up in 2021 and 2023, respectively.

The complex located at the Port of Açu, in Rio de Janeiro, also includes an LNG terminal with a total capacity to process 21 million cubic meters per day. Brazil is an importer of LNG, mostly used in the country for power generation.

SPIC Brasil has also entered into an agreement to participate in the future expansion of two other power plant projects, known as GNA III and GNA IV, which are expected to be fueled by a combination of LNG and domestic gas from Brazil’s deep-water fields known as the pre-salt, the companies said.

Reporting by Sabrina Valle Editing by Marguerita Choy

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