Wärtsilä of Finland has been contracted by Methax, a unit of Grupo Galieo, to supply a 40 MW smart power generation plant to Mendoza, Argentina.
The €25 million (Approx: US$26 million) turn-key engineering, procurement and construction (EPC) order includes Wärtsilä 34SG engines running on natural gas, the company said in a statement on Wednesday.
Argentina is suffering from energy shortages and the government is attracting private investments in order to increase capacity and efficiency.
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 power.
Methax will generate electricity for 15 000 households with the power plant. Other companies from Grupo Galileo will provide the natural gas for the plant by purchasing it from producers who are flaring the gas at present in the Malargüe region.
The gas will be liquefied at the well-head by mobile Cryobox LNG production stations and then transported by road from Malargüe region to Anchoris, where it will be regasified at site, Wärtsilä said.