Golar Power to Provide FSRU for Brazilian LNG Terminal
Bermuda-registered company Golar Power will be providing a floating storage regasification unit (FSRU) for a new LNG terminal at the Port of Vila do Conde, in Barcarena, Brazil.
The terminal will be wholly operated by Golar Power, a 50/50 joint venture between Golar LNG and Stonepeak Infrastructure Partners.
Located in a strategic entry point in the North region of Brazil, the LNG terminal is expected to start operations by mid-2021.
It will be used as a hub to allow the distribution of LNG and supply of natural gas for electricity generation, commercial and industrial customers, transportation and bunkering before a 605MW LNG-to-power project in Barcarena, which will also be delivered by Golar Power, starts operations.
The company said FSRU selection and detailing of the terminal were under way with an anticipated FID in the first half of 2020.
“The energy hub that will be introduced by Golar Power in the State of Pará has the potential to supply an area larger than Western Europe, with millions of kilometers of river navigation routes,” Eduardo Antonello, Golar Power CEO, commented.
“Considering the environmental and social benefits, our project has the potential to displace very large volumes of diesel, coal, LPG and heavy fuel oil (HFO) consumption with cheaper LNG, allowing significant reduction of greenhouse gas emissions and creating unique technical and economic development opportunities for the local populations.”
This is the company’s second LNG-to-power project in Brazil. In 2016, Golar Power secured a 25-year FSRU charter for the Porto de Sergipe Project.
The announcement of a new FSRU delivery agreement follows Golar LNG’s decision to spin off its LNG shipping business with the aim of focusing the company’s core business on LNG infrastructure. Golar LNG earlier said it was in discussions with Golar Power to exchange one of their LNG carriers for the FSRU Golar Tundra.
Should the joint structure proceed as planned, the company’s direct exposure to the carrier market would then be limited to one modern steam turbine vessel, Golar Arctic, with Golar Viking contracted to be sold in 2020 post FSRU conversion.
The spin-off is expected to be completed by the end of 2019.