Intelligence

IIICorp to sponsor the 50th FELABAN Annual Assembly in Buenos Aires

felaban IIICorp is a sponsor of the 50th FELABAN Annual Assembly, taking place in Buenos Aires November 5-8. FELABAN is the premier international LATAM banking event, and we are very much looking forward to introducing our product to the LATAM banking community. If you or your colleagues are attending the conference, please stop by Table 14 in the exhibitor hall to meet us and learn more.

Feel free to email Chris Salgado, our Head of Sales and Product Development for Trade Finance, at chris.salgado@iiicorp.com to arrange individual meetings or introductions. We See you in Argentina! show less

SES to supply gasifiers to Brazil’s Vamtec Vitoria in deal worth more than USD 100m

Synthesis Energy Systems, Inc. (SES) is slated to supply coal gasification technology to a USD 400m Vamtec Vitoria SA biodiesel production plant, according to Vamtec Vitoria Feasibility and Project Director Jean Levitre.

The deal is likely to be valued at more than USD 100m. SES CEO DeLome Fair yesterday that the company remains in “strong consideration” for a project in South America that could net it over USD 100m in revenue, likely in reference to the Vamtec Vitoria project. Pressed by analysts for more information about the deal, she declined to provide further comment.

Vamtec Vitoria recently received a nod from the municipal legislature in Candiota, Brazil to build a local USD 400m methanol gasification-based biodiesel production plant, according to local media reports. The facility will provide 750 tonnes/day of methanol to the local market and utilize SES technology to gasify low rank coal.

Vamtec Vitoria has signed a letter of intent to purchase a 70MW turbine from Mitsubishi Groupsubsidiary Mitsubishi Heavy Industries for the facility. The company is also planning to build a 4000 t/d coal gasification train, 1300 t/d oxygen plant, 1300 t/d argon plant and 200 t/d argon plant. It is preparing an environmental impact assessment now that should be completed within two to three months. Vamtec will meet with its undisclosed investment partner in December to review the capex and opex of the project and, if green lighted,seek an EPC contractor by 2H17.

Vamtec is looking for financing to support the construction of the project, according to local media. The company is attempting to raise 70% of the value of the facility via the Banco Nacional de Desenvolvimento Economico e Social (BNDES) and the remaining 30% via equity investors. Levitre said it is in talks with various investors now and declined to provide more information.

The Vamtec Vitoria plant will help reduce Brazil’s reliance on imported methanol, a key component of biodiesel. Each liter of biodiesel contains about 12% methanol and Brazil currently imports about 1.5m tonnes of the chemical compound annually. Brazil has ramped up its biodiesel production in recent years, a development that has contributed to a 675m-tonne reaction of greenhouse gas emissions.

Based in Houston, Texas, SES sells technology that can convert low grade coal, biomass and municipal solid waste into energy products for applications in the power generation, industrial fuels, chemicals, fertilizers and transportation fuels industries. The company reported revenues of USD 500,000 for the three months ended 30 June, down from USD 4.6m on the year. As of that same day it had USD 13.8m in cash and cash equivalents and USD 2.4m in working capital.

SES has built extensive ties to industry and government in China over the last several years. It is angling to use its base of operations in the country to faciliate a global expansion in the company years. For example, the company’s Chinese joint venture with Suzhou Thvow Technology Co Ltd, known as Suzhou Tianwo SES, is likely to be involved in supplying equipment to SES’ projects in South America, CEO DeLome Fair said earlier this year. Simon India Ltd, another SES partner based in India, is also likely to be involved, Fair said at the time.

SES declined to comment on this story.

 

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IIICorp Opportunity of the Week: Sonnedix gets loan approval from Green Climate Fund for 143MW solar project in Chile worth USD 265m

The South Korea-based Green Climate Fund recently approved a loan worth USD 49m to a large-scale solar PV project coming up in the Atacama desert in northern Chile implemented by US-based independent power producer (IPP) Sonnedix. Sonnedix, founded in 2010, has raised over USD 554m in equity to date from founders, management, private, and institutional investors. Sonnedix is a JV owned and controlled by Sonnedix Global Holdings Ltd and IIF Solar Investment Ltd (JPM IIF), an entity controlled by the Infrastructure Investment Fund.

The project will have an installed capacity of 143MW (likely AC-rated, while DC-rated capacity will be around 170MW). The project will have the capacity for expansion up to 250MW. The project is expected to require a total investment of USD 265m, with the USD 49m loan being disbursed through the Development Bank of Latin America (CAF). The project will start selling electricity at USD 4.4 per kWh from 2017 onward. This tariff is however expected to increase gradually to reach USD 8 per kWh by 2035.

The EPC and operation and maintenance (O&M) for the project is by Biosar Energy SA, which was acquired in 2012 by the Greece-based AKTOR S.A.

To connect the Atacama solar PV plant power substation, 45.5km of transmission lines and grid connection equipment at the Lagunas substation will be developed by Transelec SA under a build-own-operate-transfer (BOOT) contract and repaid under a 25-year lease with fixed payments and repurchase option of USD 1.

Recently, the Chile government approved legislation that will create a new interconnected transmission network to be established alongside a new independent operator. This will ensure that power generated from renewable energy projects located in remote regions of the country is supplied to population centers.

 

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IIICorp Opportunity of the Week: Unitel’s two-pronged strategy gains momentum in Southeast Asia, lands PT Pertamina catalyst systems deal

Unitel Technologies is supplying Indonesian state-owned oil firm PT Pertamina with its proprietary Octave catalyst research system under the terms of a deal signed recently, according to CEO Serge Randhava. Meanwhile, the company is laying the groundwork to capitalize on a major natural gas-related opportunity in the region.

The deal with PT Pertamina is likely to be worth about USD 2m for the Matawan, New Jersey-based specialty process engineering firm that designs and builds pilot- and full-scale oil and natural gas processing facilities. In March, the CEO told this news service that his firm was in talks to supply Octave systems to multiple oil companies in Southeast Asia.

Unitel’s revenues typically do not exceed USD 15m annualy because it’s primarily a technology firm and sub-contracts much of the engineering work required for its projects to other companies.

Regional LNG opportunities

Randhava said that the opportunity to sell catalyst research systems in Indonesia, and Southeast Asia at large, pales in comparison to opportunities to sell its process engineering services and technologies to the region’s liquefied natural gas (LNG) industry.

Unitel was selected earlier this year by the Korea Gas Technology Corporation (KOGAS) to conduct the front end engineering and design work needed to commercialize a “small-scale LNG business opportunity,” according to a press release from January. KOGAS, the world’s largest importer of LNG, is aiming to design, build and operate multiple 200 TPD LNG mini-plants that will create a virtual pipeline to supply product for local transportation fuel and power generation applications, Randhava said. Eventually, the Korean company would like to build the small-scale plants in countries in need of critical natural gas infrastructure, he said.

“The opportunities to develop small-scale LNG plants should be of great interest to countries like Vietnam, Malaysia and Indonesia,” Randhava said. “I’m excited about that; [KOGAS] is aggressive.”

One application for the small-scale LNG technology KOGAS is developing might be at the Vietnam Block B development, Randhava said. PetroVietnam is aiming to produce 107bn cubic meters of gas and 12.65 million barrels of condensate from offshore Block B, of which 5.06bcm are expected to be brought onshore per year from 2020 to 2040. The fuel is expected to be used to power plants in the Kien Giang and O Mon district of Can Tho city. The initiative entails an investment of about USD 6.08bn.

Randhava noted that the company plans to move onshore only about half of the gas it is producing from Block B. He said that it is likely planning ot either make LNG in small-scale plants onshore for distribution throughout the country, or convert it into dimethyl ether for use in Vietnam and neighboring countries.

Opportunity Size: 15m USD

 

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IIICorp opportunity of the week: GMH seeks funding for proposed USD 800m Tamil Nadu-based TPP

General Mediterranean Holding (GMH) is looking for financiers for its proposed 1030MW merchant thermal power plant at Kattuppalli Village in Thirvallur district in Tamil Nadu (TN), according to Justin Paul, the President Technical at Chennai Power Generation Limited (CPGL), the Indian subsidiary of the Luxembourg-based company.

“The project is awaiting environment clearance, land acquisition, and fuel-supply agreement for the power plant and we will look at financial closure of the plant in the first quarter of 2018,” Paul told this news service.

The company president did not provide a timeline when the EPC tenders would be invited but said that the bids would be invited soon after the environment clearances and fuel supply agreements are in place.

The 1030MW power project had experienced difficulties when North Chennai Power Company Limited refused to spare 70 acres of land to CPGL for the plant due to a reported overlap in location of the two companies’ power plants. The terms of reference (ToR) for the project were initially issued in 2009, however these expired in 2013 due to the inability to resolve the land issue. A fresh application to issue the ToR was submitted in September 2015, which was approved in early June this year.

The total project investment (TPI) comprises USD 788.5m (Rs. 5245.6 crore) and the facility will source coal from Indonesia and Australia. It will consist of two 515MW steam turbine generator (STG) sets and two pulverized coal-fired subcritical boilers. The balance of plant (BoP) package will comprise the coal and ash handling plant, water treatment plant, desalination plant, compressed air system, electrical controls, instrumentation and control, and chimney, all of which cost USD 639.3m.

The total plant area will cover about 319 acres of land, including an ash pond area, along with 23 acres within Coastal Regulation Zone (CRZ) area that will be utilized as corridor for sea water pipeline and for coal conveying at a total cost of USD 27.5m.

There will also be a requirement for the installation of electrostatic precipitators (ESPs) and flue gahis weeks desulfurization (FGD) systems however these will be decided based on the fuel supply agreement signed.

“If required, we will invite separate bids for the construction of the FGD plant,” said Paul.

 

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IIICorp Opportunity of the Week: Andhra Pradesh in talks with Chinese firms for partnership in its proposed USD 16bn hydrocarbon complex

The State Government of Andhra Pradesh(AP) is in talks with Chinese partners for a potential partnership to develop its proposed USD 16bn cracker complex in the port town of Machilipatnam.

“We had a Chinese delegation representing a potential consortium partner inspecting the land proposed for the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR),” said CHSS Prasad, Chief General Manager (Projects), Andhra Pradesh Industrial Infrastructure Corporation (APIIC). APIIC is the nodal agency implementing the project along with Vishakhaptnam Development Authority and the industries department of the AP state government. He however declined to share further details of the potential partner, citing confidentiality.

The plan is to put together a consortium of state-owned oil companies, exploration firm Oil and Natural Gas Corporation Limited (ONGC) along with private global players who have expertise in developing a facility of this magnitude. This news service had earlier reported that Dubai-based Al Kharash Contracting Co was one of those global players that had showed initial interest.

In a cracker complex of this scale, the refinery, or the mother cracker, creates raw material or feedstock for several chemical-making units, where the end-user industries involve polymers and pharmaceuticals, among others. Once completed, this will be India’s largest cracker unit with a capacity of 10 million metric tons per annum (MMTPA).

An industry source said a mother cracker complex of this size will open up opportunities to equipment suppliers from developed markets in the US and Europe. According to a previous working paper published by the Indian Council for Research on International Economic Relations (ICRIER), India currently has three naphtha-based, three gas-based, and one mixed-feed cracker units with a combined ethylene capacity of 3.3MMTPA.

The major feedstock used in petrochemical units is naphtha and natural gas (propane and butane), while the major intermediate products produced in the country are ethylene, propylene, butadiene, benzene, toluene and xylene, which are used in a variety of industries.

 

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IIICorp joins in the discussion at 19th Annual AFTA Conference in Miami

Discussion and debate at an Association of Trade & Forfaiting in the Americas event in Miami last week touched upon the latest developments facing the trade finance and credit insurance industries. Conference attendees addressed the global economic outlook, the unique challenges facing the credit insurance industry today, newly-emerging forms of trade receivables securitization, new platforms for exchange between corporates and financial institutions, the difficulties facing commodity companies and traders, the changing trade finance legal landscape in the Americas, and the expanding global roles of development finance institutions Overseas Private Investment Corporation (OPIC) and Banco Latinoamericano de Comercio Exterior (Bladex).

The event attendees list included trade insurers, receivables finance creditors, development finance institution members, export credit agencies such as the Export Development Bank of Canada (EDC), legal advisers to companies engaged in international trade and data services companies offering trade players the power to make informed decisions.

For more information on IIICorp’s origination intelligence for Trade Finance, visit https://www.iiicorp.com/TradeFinance