Hygo inks Barcarena LNG terminal deal in Brazil
Hygo Energy Transition has executed a memorandum of understanding with Brazil’s Companhia de Gás do Pará to use the Baracena terminal.
Hygo Energy Transition, a joint venture between Golar and Stonepeak Infrastructure Partners, will supply natural gas and LNG to GdP once the negotiations are finalized, and the contracts are executed.
The company will utilize the Barcarena terminal, the only one permitted in this isolated region, to supply the volumes.
Additionally, under the MoU, Hygo and GdP will explore the potential in the local market.
GdP is the regulated local distribution company (LDC) that has the exclusive rights to distribute natural gas in the state of Pará, Brazil.
The Barcarena terminal construction will start shortly with operations to commence in the first half of 2022.
Fabio Amorim, commercial director of GdP said, “The MOU is an important step towards introducing natural gas to the Para state. The Barcarena LNG terminal will transform the fuel supply in the region, and our clients will have an affordable solution to reduce their environmental footprint”.
Hygo estimates the potential for replacing approximately 1.8 million tons of LNG equivalents per annum of LPG, diesel, fuel oil, and coal from the terminal. The LNG demand for power generation is also significant.
The company has secured 25-year PPAs for a 605MW power station in the region, which adds 0.6 mtpa of LNG demand to the Barcarena terminal, starting in January 2025.
This power station will be capable of running with a blend of up to 50 per cent of Hydrogen. The company also expects to utilize the Barcarena LNG terminal to provide an LNG supply solution to the new regional power auction.