Rio de Janeiro, August 3, 2010 — MPX Energia S.A. announced today that the Environmental Secretary of the State of Maranhao (SEMA) granted the Preliminary Environmental License to the MPX Parnaiba power generation complex that will be located in the city of Santo Antonio dos Lopes.
The license confirms the environmental feasibility of the project, which consists of gas-fired plants that are expected to provide up to 1,863 MW of power. MPX Parnaiba is a partnership between MPX and PETRA Energia S.A. in which MPX holds a 70 percent interest and PETRA 30 percent.
The land for construction of the power generation complex has already been acquired by MPX Parnaiba and is strategically located 50 kilometers from a 500 kV substation and 30 kilometers from the water supply. The complex’s engineering project has been designed to accommodate several different technology configurations.
Natural gas to fuel the complex will potentially be supplied by output from the onshore blocks owned by OGX Maranhao, a special purpose vehicle in which MPX holds a 33.3 percent stake and OGX Petroleo e Gas S.A. has 66.7 percent.
OGX Maranhao, which holds a 70 percent interest in the blocks and is also the operator, initiated drilling of the California prospect, located in the PN-T-68 block, in early July and expects it to last about 70 days.
“The vertical integration of power generation and the supply of natural gas will give MPX an important competitive edge. We believe gas-fired thermal power will play an increasing role in the lives of Brazilians, and this project places our company in a strategic position to capture the growth of this segment,” commented Eduardo Karrer, CEO of MPX.