March 15, 2021
- Catherine McCarthy, Jessica Springsteen, Rob Richardson, Eli Keene, Greg Jehle, Pablo Fekete, Jaime Turcios Zacarias, Lucy Roberts, Marcella Stokell, Desmond Ng
Clifford Chance advises IDB Invest on financing for Floating Storage and Regasification Unit in El Salvador
Washington, DC: Leading international law firm Clifford Chance advised IDB Invest as lender to FSRU Ltda de CV and FSRU Development Pte Ltd on the US$128,300,000 financing for the purchase and conversion of a liquified natural gas (LNG) carrier (LNGC) to a Floating Storage and Regasification Unit (FSRU). The FSRU will be permanently moored at the port of Acajutla in the Department of Sonsonate in El Salvador, to provide liquified natural gas regasification services to Energia del Pacifico Limitada de CV, a 378-megawatt combined cycle thermal power plant financed by IDB Invest in 2019. The FSRU is an essential piece for the operation of the LNG-to-power plant, which is expected to be the lowest cost thermal generator in El Salvador, a country heavily reliant on imported heavy fuel oil-fired generators for its dispatched power. This is expected to result in reliable energy, reduced carbon emissions and increased foreign investment.
The first disbursement of the loan occurred on March 11, 2021. Commercial operations are expected to begin by the end of 2021.
Lead partner Kate McCarthy commented, "I am pleased that we have been able to guide our long-time client on this complex transaction, which will have long term positive impact on El Salvador's energy sector. I am also proud of the Clifford Chance team which consisted of lawyers from five different offices and various practices, a true testament to our strength as a global firm."
Working with Kate on this deal was a multi-jurisdictional, cross-practice team in:
- Washington, DC: lead deal associate Jessica Springsteen, associates Rob Richardson, Eli Keene, Greg Jehle and special legal consultant Pablo Fekete;
- New York: associate Jaime Turcios;
- London: lawyer Lucy Roberts and trainee solicitor Chloe Barclay in London;
- Madrid: attorney Gabriel Miranda;
- São Paulo: Patricio Abal
- Singapore: senior associate Marcella Stokell and associate Desmond Ng.