Edelca, PDVSA discuss gas supplies for 450MW power project

Venezuelan state-owned power company Edelca has started talks with state oil company PDVSA regarding gas supplies for a 450MW power project, the company said in a statement Thursday. Previous reports have said gas could come form the Yucal Placer project, owned by France's Total, Spain's Repsol YPF and Venezuela's Otepi and Inepetrol. Edeleca is continuing with feasibility studies, and needs authorization to spend US$200mn to contract the construction, the statement said. In hydro generation, the company needs a US$120mn financing tranche to be released to continue works at the 2,160MW Caruachi project, where the fourth generation unit will start operations December 1. The financing is part of a program agreed on by the government, Edelca, multilateral banks and other financial institutions. Edelca is providing US$1.6bn of the project's US$2.7bn total cost. Four more units would be installed at Caruachi in 2004, three in 2005 and one in 2006. The complex is expected to generate 12,950GWh a year upon completion. Edelca generates 65% of Venezuela's power, and the company has accelerated its work plans to guard against the possibility of shortages, the statement said. Edelca has also started preliminary work at its 2,112MW Tocoma hydro project, also on the Caroni river, and modernizing its 10,300MW Guri hydro plant, as part of a program to extend the life of the plant by 30 years. Edelca plans to invest US$5bn in electric power through 2006.