Sherritt power venture plans third Cuba plant

Sherritt power venture plans third Cuba plant
Mon Jan 11, 2010 11:48am EST

HAVANA, Jan 11 (Reuters) - Canadian mining and energy company Sherritt
International (S.TO) will build a third gas-fired power plant in Cuba in
conjunction with its state partners, local media reported this week.

Cienfuegos Communist Party weekly, 5th of September, said the new
Energas plant, with a 150-megawatt capacity, would be built in the
province, some 250 miles (402 km) southeast of Havana, fueled by gas
from the Cienfuegos oil refinery, a joint venture with Venezuela's state
oil firm PDVSA.

"The effort is part of Cuba's strategy to reduce imports and use
environmentally friendly energy sources," 5th of September said.

"The plants opening in the medium term will also mean gas generated
power represents between 10 percent and 15 percent of all power
generation in the country," the weekly said.

Energas S.A., in which Sherritt has a 33 percent stake, currently
operates two plants in western Matanzas and Havana provinces with a
capacity of 376 megawatts, fired by natural gas from oil wells along the
northwest coast.

Energas's state partners are CubaPetroleo (Cupet) and Union Electrica,
each with a 33 percent stake.

Sherritt is one of the largest foreign investor in Cuba, with additional
interests in the nickel, oil and gas.

(Reporting by Marc Frank; Editing by Lisa Shumaker)

CORRECTED - Sherritt power venture plans third Cuba plant | Reuters (11
January 2010)
http://www.reuters.com/article/idUSN1115557720100111?type=marketsNews