Alvopetro Energy Ltd. (ALV) announced the award of the contract for the construction of a Natural Gas Treatment Facility (Facility) in the state of Bahia in Northeast Brazil. This facility is the key strategic asset underpinning their natural gas development project and will be the first 100% independently owned treatment facility in Brazil capable of delivering sales specification natural gas.
Alvopetro has awarded a ten-year contract to Enerflex Ltd. to build, own, operate and maintain the Facility. Enerflex is a global leader in the natural gas industry, providing integrated gas compression and processing solutions with an established Brazilian operating presence.
Under the terms of our agreement, Enerflex will construct the Facility using a mechanical refrigeration unit (MRU) as the main processing element. The MRU technology was selected by Alvopetro based on the ability to manage a broader range of inlet natural gas specifications, making it ideal for accommodating the richer Gomo natural gas and natural gas from future discoveries and projects. Enerflex will construct and own the Facility, provide operations and maintenance, while warrantying the delivery schedule and on-stream availability. The Facility is scheduled to begin commissioning in November 2019 and be operational by the end of 2019. Alvopetro will pay an integrated service fee for the Facility of USD 2.9M per year over the 10-year term of the agreement.