Wartsila has won a €30m ($32m) contract for a 92 MW gas-fired power plant in Argentina.

The Caimancito power plant is being built by engineering firm Sullair Argentina and Wartsila will supply its own 50SG natural gas engines. The equipment is expected to be delivered this year, with the plant being fully operational in June 2017.

The plant will be built in the northwest of the country and reinforce the grid in the area. Luis Vago, director of operations at Sullair, said that it would be “a complicated project” because it is in a remote location with road access difficulties, which means Wärtsilä’s engines will be transported in parts and be reassembled on-site.

Vago added that “the government was originally tendering for dual-fuel engines but we offered an alternative solution with Wartsila’s gas engines and we won – Wartsila had engines in stock and they promised that the plant will be operational within a year.”

Argentina is suffering from energy shortages due to a history of widespread subsidies that have distorted the energy price, and regulations that have complicated investments in power generation and distribution. Now the government is seeking to remedy the situation by investing heavily in new capacity, focusing especially on increasing efficiency and adding renewable energy.