Golar Power wins Brazilian LNG-to-power project deal

Golar LNG said that Golar Power, a (50/50) joint venture with Stonepeak Infrastructure Partners, has been awarded a 25-year power purchase agreement (PPA) for the construction of a 605MW combined cycle thermal power plant in Brazil. 

The company has been awarded the PPA at the 2019 A-6 New Energy Auction held by the Brazilian National Electric Energy Agency – ANEEL.

The LNG-to-power project will be developed by CELBA (Centrais Eletricas Barcarena), a special purpose company 50 percent controlled by Golar Power.

Located in the Brazilian city of Barcarena, State of Pará, the 605MW power plant will utilize imported LNG for the generation of electricity using H-Class gas turbines, which will then be distributed to the Brazilian national electricity grid through the existing Vila do Conde Substation located nearby.

Total investments for the power project are estimated at $430 million, of which Golar LNG’s share is $107m. Capex will be funded through debt and equity between 2022 and 2025 with the equity portion expected to come from proceeds of the first wave of small-scale distribution in Golar Power.

In connection with the PPA, Golar Power anticipates accelerating investment in a new LNG terminal at the Port of Vila do Conde, also located in Barcarena.

The terminal will be wholly operated by Golar Power and will provide an FSRU for 25 years to supply the project. The terminal is expected to commence operations by mid-2021 and is located in a strategic entry point in the North region of Brazil, which 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 well in advance of the power project commencement. FSRU selection and detailing of the terminal are underway with an anticipated FID in the first half of 2020.

Golar Power CEO Eduardo Antonello said, “We’ve been working for over 3 years on this endeavour, whilst also mapping the potential LNG applications such as road and river transportation, mining, agriculture, industries as well as large populational areas, and now it has become a reality.”