Golar Power, BR Distribuidora partner up on LNG distribution in Brazil

Golar Power, a joint venture between Golar LNG and Stonepeak Infrastructure Partners, has formed a partnership with Petrobras Distribuidora for the development of LNG distribution businesses in Brazil.

The intention is to introduce liquefied natural gas (LNG) as an alternative to the fuels currently available to Brazil’s cargo and people transportation, industrial, thermoelectric generation, commercial and residential sectors.

Golar said in its statement the formation of this partnership coincides with the opening up of Brazil’s natural gas sector and the demand from society for alternatives to the fuels currently on offer.

In Brazil, Golar Power and its partners are developing the country’s largest natural gas-fired thermoelectric plant, with an installed capacity of 1.55 GW, and an associated LNG regasification terminal in Sergipe.

Golar Power was also the winner of the 2019 A-6 Electricity Auction, which contemplates the construction of a new 605MW LNG supplied thermoelectric plant in the state of Pará together with a dedicated LNG terminal with the potential to supply a region with the largest potential for energy growth in Brazil.

The partnership between Golar Power and BR Distribuidora foresees the use of the entire network of gas stations and supply bases of BR Distribuidora as well as Golar Power’s LNG terminals and ships to facilitate the comprehensive rollout of LNG supply to Brazil’s transportation and industrial sectors, particularly in regions not supplied by gas pipelines.

BR Distribuidora, being a major user of road transport itself, also intends to replace its currently hired fleet of approximately 5,000 trucks with vehicles that use LNG.

To this end, BR will seek to gradually replace its diesel truck fleet with LNG-powered trucks, with the ultimate goal that 20 percent of the total fleet will be replaced annually with LNG trucks.