Banda Gas To Power Project

Presented By:
Prateek Goyal
Ramswarup Bhaskar

Background

Mali, Mauritania and Senegal - face daunting energy challenges

Lack of Infrastructure & Low access to energy Constrained GDP.

Rely on hydropower and oil-based power - High technical and

commercial losses.
National power utilities - Financial deficits - Government support
Power Grid of the three are interconnected & countries trade power
through a central dispatching center.
New gas finds in Mauritania are a potential game changer.
Lack of credit worthiness Credit enhance mechanisms to mitigate
credit risk

Power sector performance

The Project
The PDO - produce natural gas for generation of
electricity to reduce the cost and increase the supply for
Mauritanian households and industry, and enable
regional integration through power exports.
The Banda gas field is located approximately 55 km
offshore Nouakchott in Mauritania.
It includes the production of gas from Banda gas fields
Generating power from that gas by dual fuel & CCGT
generator; and
At last supplying the generated electricity to the end
consumer by installing new transmission lines.

Project Description
It consists of the following components:
The Banda Gas Project: Its an JV.
The SPEG Power Project: Its an SPV
Existing and new power transmission lines to evacuate power to the delivery points.

Banda field shareholders are Tullow (67%), Petronas (15%), Kufpec (13%)
and Premier Oil (5%) and Expected Output of gas is up to 70 million
standard cubic feet over 20 years.
SPEG is SPV incorporated for the purpose of power generation ,The power
project include construction of two power plants at Nouakchott(Mauritania)
180 MW dual-fuel thermal gas fired power plant To be commissioned by March 2015
120 MW combined cycle power plant : To be commissioned by mid 2016

Project Description
SPEGs shareholders are SOMELEC (40%); KG Power (34%); and
SNIM (26%).
Power generated by SPEG to SOMELEC will be evacuated through
several routes:
i.
The North HV line( to Nouadhibou Tasiast, owned and
operated by SOMELEC and financed by the Saudi Fund
ii. The existing OMVS high voltage transmission line (power
plant -short extension), funded by SOMELEC and
iii. The South HV line (Mauritania Senegal), to be financed by
AFD and IsDB, with a wheeling capacity of about 170 MW to
be built in one phase.

Transmission lines

Gas & Power Sales

Funding Requirements
Banda Gas Project:
The estimated investment cost is US$650 million
Source of funding: Equity Contribution

SPEG Power Project:

Total Costs are estimated at US$467.1 million, including

(a) US$221.2 million for the 180 MW dual fuel plant financed by SOMELEC, with funds sourced from
IsDB and Arab Fund for Economic and Social Development (AFESD)

(b) US$217.3 million for the 120 MW CCGT plant financed by KG power and SNIM seek to raise debt a
the project company Level from EIB and AfDB.

Transmission Infrastructure: This includes

North HV line (US$170 million);
OMVS line extension (US$7 million)
South HV line (US$170 million).

Project Agreement GSA & PPA

GSA: agreed price of US$12/mmBTU (inflated
2%) between SPEG and Banda.
PPA: SOMELEC agreed to buy from SPEG with a
fixed and variable price component
Secondary PPA: SOMELEC to sell power to SNIM,
Kinross, SENELEC and EDM.

Project Agreement - IDA

Project Agreement - MIGA

Key Challenges & Issues

The overall Project risk rating is High.
Potential for construction delays.
Lower electricity demand than projected.
Assessment and Management of Environmental and Social Risks and
Impacts
Resource Efficiency and Pollution Prevention
Community Health, Safety, and Security
Land Acquisition and Involuntary Resettlement
Biodiversity Conservation and Sustainable Management of Living Natural
Resources

Cash Flow Projections

speg.xls

References
http://www.miga.org/projects/index.cfm?esrsid=117
http://www.worldbank.org/projects/P145664?lang=en
http://documents.worldbank.org/curated/en/2014/05/19490845/mau
ritania-senegal-mali-banda-gas-power-project
http://www.offshore-technology.com/projects/banda-gas-fielddevelopment/
http://www-wds.worldbank.org/external/default/WDSContentServer/
WDSP/IB/2014/04/23/000414397_20140425183413/Rendered/PD
F/PID0Appraisal00s0to0Power0April022.pdf
http://www-wds.worldbank.org/external/default/WDSContentServer/
WDSP/IB/2014/05/13/000442464_20140513092605/Rendered/PD
F/830250PAD0P107010Box385211B00OUO090.pdf

Thank You