EIG Announces major development at Prumo Logistica - Porto do Açu


EIG Announces major development at Prumo Logistica

Gas Natural Açu, Prumo’s subsidiary, draws on US$750 million project financing for 1.3GW first phase of LNG-to-power complex

EIG Global Energy Partners (“EIG”), controlling shareholder of Prumo Logística S.A. (“Prumo” or the “Company”), a private Brazilian company leading the energy infrastructure hub at Port of Açu, today announced major developments at Prumo.  Among them, Gas Natural Açu (“GNA”), a joint venture among Prumo, BP and Siemens focused on the development and operation of sustainable energy and gas projects, has satisfied the conditions precedent required to draw on the previously announced US$750 million project financing led by IFC, KfW and the Brazilian National Development Bank.  GNA will apply the loan proceeds toward the completion of the construction of the 1.3 GW first phase of GNA’s LNG-to-power complex (“GNA I”).

Additionally, the development of the second phase of the complex, a 1.7 GW LNG-to-power project known as GNA II, is already underway and energy contracts have been secured.  Upon completion, GNA I and GNA II will have 3GW of installed capacity—enough to supply energy for up to 14 million households—making it the largest gas-to-power project in Latin America.  GNA has a total licensed capacity of 6.4 GW and registered projects in the upcoming A-6 energy auction.  GNA I and the LNG import terminal are expected to start commissioning by March 2020.  In addition, GNA is developing offshore pipelines, gas processing facilities and a liquids export terminal for pre-salt gas, and onshore pipelines connecting Açu to the gas pipeline grid.  Total investment for the first two phases of the GNA LNG-to-power complex is estimated to be in excess of US$2 billion.

EIG also announced that Prumo has named three prominent industry veterans to its Board of Directors.  Pedro Parente, chairman of BRF and former president of Petrobras, has joined the Board together with Ieda Gomes, former President of Comgas and BP Brazil, and Franklin Feder, chairman of InterCement Participações and former President of Alcoa Latin America.

Mr. Parente said, “I look forward to serving this incredible company, the operator of the largest private port in Latin America.  Prumo and the Açu Complex represent critical infrastructure in unlocking Brazil’s massive pre-salt reserves and will serve as a key enabler of the Brazilian new gas market (“Novo Mercado de Gás”).  As a Brazilian, I’m proud to be part of this effort that will create meaningful social and economic development for Brazil and the region.”

Carlos Tadeu Fraga, a leading expert in oil & gas with unparalleled industry knowledge, experience and relationships, recently assumed the role of Prumo CEO.  Under Mr. Fraga’s leadership, Prumo has bolstered its management team with the recent addition of Luciana Rachid, former TBG CEO, as head of gas strategy.

Mr. Fraga said, “It is an honor to serve as Prumo’s CEO and enhance the development of the Port of Açu, with its unique position as the only private gas hub in Brazil that combines LNG, domestic gas, liquids export, 6.4GW of power licenses and industrial gas-consuming projects in a single location.  Having spent my entire career helping Brazil develop its hydrocarbon reserves, including the pre-salt, I couldn’t be more excited to lead the company that is the owner and developer of this outstanding infrastructure that supports the oil & gas offshore activities and consequently will boost industrialization in Brazil.”

Açu, the largest port-energy-industry complex in Brazil, also includes an oil hub, strategically important for the export of pre-salt oil, as well as processing, blending and storage.  Açu Petroleo, a Prumo partnership with OilTanking, has attracted leading global oil and gas companies, including Shell, Petrobras, Galp and Equinor, as customers for its highly efficient oil transshipment terminal.  It is the only private terminal on the Brazilian coast, with 1.2 million bbl/day capacity, and the ability to receive Very Large Crude Carrier vessels (“VLCC”).  The Company’s expansion projects include oil pipelines connected to the grid and 5.5 million bbl of storage and oil treatment facilities to serve growing export volumes.

R. Blair Thomas, CEO of EIG and Chairman of the Prumo Board of Directors, said, “EIG is proud to support these incredible projects, and I am thrilled to welcome a new crop of talented industry leaders to the Board and management team. Prumo’s operating momentum continues to accelerate, as exemplified by its strong operating results and its ability to attract the industry’s finest talent. As Prumo’s majority owner, EIG is gratified by the success of Prumo’s recent strategic developments and commercial partnerships, and we are eager to continue to play a role in its dynamic expansion.”

About Prumo Logística

Prumo is a multi-business economic group responsible for the development of the Port of Açu, the largest port complex in Brazil.  Through the six companies that comprise the group—Porto do Açu, Ferroport, Açu Petróleo, GNA, Dome and BP Prumo—Prumo provides services in the mining, port logistics, energy, and oil & gas segments.  Key partners and clients of Prumo include Port of Antwerp, BP, Siemens, Anglo American, Oiltanking, GranIHC, Shell, Petrobras, Galp, Equinor, TechnipFMC, NOV, Edison Chouest, Intermoor, Wartsila and other global industry leaders.  Port of Açu also has strategic agreements with the Port of Houston, USA, and the Port of Guangzhou, China.

About the Port of Açu Complex

Positioned on over 50 square miles of land, the Açu complex has up to 10 miles of quay, 40% of which is operational and up to 82 feet deep.  These attributes allow the port to receive VLCC vessels that have the capacity to store up to 2 million barrels of oil and are among the largest ships in the world. The complex currently handles oil, iron ore, coal, coke, bauxite and gypsum, as well as general and project cargos.   In 2017, the Port of Açu Export Processing Zone (“Açu EPZ”) was created as a free trade area, focused on exports with private administration and industrial support logistics.

Prumo also seeks to be a leader in supporting local communities and the environment.  The Açu Complex currently employs more than 7,000 workers, more than 70% of whom come from the surrounding communities of São João da Barra and Campos dos Goytacazes in Rio de Janeiro State.  Prumo is also the home of the 10,000-acre RPPN Caruara nature preserve, Brazil’s largest private reserve dedicated to the Restinga ecosystem.  More than 1 million seedlings, including some belonging to species threatened with extinction, have been produced and planted in the RPPN Caruara preserve. In addition, Prumo monitors 62 km of beaches through its Marine Turtle Monitoring Program, which aims to continuously generate data on the species, promoting a better understanding of animal behavior and preservation.

About EIG Global Energy Partners

EIG is a leading institutional investor to the global energy sector with $23.3 billion under management as of June 30, 2019.  EIG specializes in private investments in energy and energy-related infrastructure on a global basis. During its 37-year history, EIG has committed over $30.8 billion to the energy sector through more than 350 projects or companies in 36 countries on six continents. EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For additional information, please visit EIG’s website at www.eigpartners.com.