Golar Power has signed a memorandum of understanding with Norway’s aluminum producer Norsk Hydro to develop the first LNG terminal in Brazil’s northern region.
The joint venture between Golar LNG and Stonepeak Infrastructure Partners says the terminal is part of its Barcarena FSRU development.
Norsk Hydro’s Alunorte refinery in Brazil’s state of Para will be the first customer supplied by the FSRU. The JV aims to launch the unit in the first half of 2022.
Finalization of this deal would be an important step toward a final decision on the LNG project, Golar Power said.
The LNG power project developer sees the decision within the next four to six months.
The terminal will supply gas to Alunorte and also to the Centrais Eletricas Barcarena 605 MW thermal power plant.
The power plant is a subsidiary of Golar Power, previously contracted under a 25-year deal.
Para LNG distribution network
Once the terminal becomes operational, Golar Power also expects to operate an LNG distribution network across Para and the region.
This network will cover an area larger than Eastern Europe including thousands of kilometres of river and road transportation systems.
Golar Power is targeting customers in the industrial, commercial, and transportation sectors.
Furthermore, the project is in line with North Hydro’s climate commitment to reduce its own emissions by 30% by 2030.
Golar Power’s CEO Eduardo Antonello said the company estimates a potential for replacing about 1.8 million tons of LNG equivalents per annum of LPG, diesel, fuel oil, and coal with the new terminal.
“The reduction in prices we have seen in recent years has significantly increased LNGs relative competitive position, not only versus diesel and fuel oil, but also now coal,” he said.
The Norsk Hydro project illustrates the economic and environmental benefits which can be achieved by global industry and mining companies by transitioning their energy sourcing to LNG, Antonello added.