Termoceara

cancelled

The project comprised construction and operation of a 216 MW thermal power plant located in the port of Pecem, Ceara State. The first phase of the project (100 MW) started operations in July 2002. TermoCeara plant was owned by MPX Participacoes. MPX was owned by Brazil's EBX Capital Partners (51%) and MDU Resources International, a subsidiary of US Montana Dakota Utilities (49%). TermoCeara was a part of a priority program for thermal power plants (Programa Prioritario de Termeletricas), implemented by the Brazilian federal government in 2000. The program, in order to foster the construction of thermal power plants, guaranteed natural gas supply for 20 years, provided financing for the construction of the plants (through the Brazilian Development Bank, BNDES) and providee subsidies for gas transportation costs. TermoCeara signed a 65-month take-or-pay PPA contract with Petrobras, a state-owned company, to sell the total energy produced. In January 2005, Petrobras suspended contingency payments to TermoCeara arguing that the contract was originally intended to smooth out cash-flow volatility, not to shore up consistent operating deficits. After arbitration between the parties started, Petrobras decided to acquire TermoCeara. In June 2005 Petrobras’ board approved the purchase for US$137 million. update - acquired by petrobras