Saturday, December 7, 2019

Equinor,YPF Pact on Argentina Wind Power

August 7, 2019

Pål Eitrheim, executive vice president for New Energy Solutions in Equinor. (Photo: Ole Jørgen Bratland)

Norwegian multinational energy company Equinor ASA and Argentine power producer YPF Luz have joined for the development of the Cañadón León wind farm in Santa Cruz in Argentina.

As per agreement, a subsidiary of Equinor will subscribe to shares in Luz del León. The shareholders of YPF Luz are YPF S.A and an affiliate of General Electric.

The agreement establishes that Equinor will have a 50% stake of Luz del León, with an equity contribution of USD 30 million. After the subscription and capital integration, YPF Luz and Equinor will jointly control Luz del León, while YPF Luz will be in charge of the operations of the Cañadón León Wind Farm project.

After the completion of the works, the wind farm will have a capacity of about 120 MW of power and a total investment estimated to around USD 190 million.

The total installed capacity and power has already been sold to CAMMESA under the RENOVAR 2 Program and to YPF S.A. under a private power purchase agreement for 20 and 15 years respectively.

"We are very pleased to add Equinor as a strategic partner for the development of the Cañadón León wind farm," says Martin Mandarano, CEO of YPF Luz. This association adds to our project greater solvency, security and experience of a relevant global player in energy matters”.

“We are very satisfied with this agreement with Equinor as a strategic partner for the development of the Cañadón León wind farm," says Martin Mandarano, CEO of YPF Luz. “In this way, we add to our projects another very important worldwide energy leader, thus reflecting the confidence of such players and global investors in YPF Luz.”

“We are pleased to deepen and strengthen our relationship with Argentina’s leading energy company YPF, now also within wind power. We are looking forward to contributing to the development of the Cañadón León wind farm project and work together with YPF Luz ,” says Executive vice president for New Energy Solutions in Equinor, Pål Eitrheim.

The agreement is subject to the fulfillment of certain condition precedents such as approval of the relevant antitrust authorities and obtaining project financing.

Equinor entered Argentina in 2017 and holds a 50% interest in the oil and gas license Bajo del Toro (YPF operator, 50%) and is operator with 90 % equity in the Bajo del Toro Este license (partner Gas y Petróleo del Neuquén, 10%) in Neuquen.

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