Wartsila is to supply a 40 MW smart power generation plant to Mendoza, Argentina, for Methax, a special purpose company owned by Grupo Galileo. The value of the order is approximately Eur25 million, Wartsila said in a statement.
The turn-key engineering, procurement and construction (EPC) order includes Wartsila's 34SG engines running on natural gas. The order was booked in the fourth quarter of 2016.
“Argentina is suffering from energy shortages and the government is attracting private investments in order to increase capacity and efficiency” Wartsila said, adding it has “taken a strong position in enabling the transition towards an affordable and sustainable energy infrastructure in Argentina.”
Methax was awarded the Mendoza power plant project, with a 10-year fixed fee and gas sale contract, in the tender issued by CAMMESA, the national grid system operator, on behalf of the ministry of energy in Argentina. “The ministry aims to further develop and strengthen the national grid in order to supply Argentina’s population and industry with reliable power,” Wartsila said.
The new power plant is to supply electricity to some 15,000 households.
Malargue region producers to supply gas via 'virtual pipeline'
Other companies from Grupo Galileo will provide the natural gas for the plant by purchasing it from producers who are currently flaring the gas in the Malargue region.
The gas will be liquefied at the well-head and then transported by road via the so-called “virtual pipeline” from the Malargue region to Anchoris, where it will regasified at site, the company explained.
“By liquefying right at the well-head, transporting and regasifying the LNG, Grupo Galileo is introducing its proprietary gas 3.0 technologies in a massive scale, which will allow Argentina’s upstream producers to meet demand through an extensive system of natural gas distribution without the use of conventional pipelines” Wartsila said.
“In addition to providing electricity to the households in Malargue region, our LNG Virtual Pipeline between the well and the power plant makes this project economically sound and allows us to utilise our Gas 3.0 solutions in mobile LNG technology to address the impact of the flaring,” commented Osvaldo Del Campo, president and CEO of Grupo Galileo.