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    Golar Power to Establish Brazilian LNG Hub

Summary

LNG imported at the terminal will be distributed to area lacking pipeline access in truck-mounted containers.

by: Joseph Murphy

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Golar Power to Establish Brazilian LNG Hub

Golar Power, a joint venture between Norway's Golar LNG and US-based Stonepeak Infrastructure Partners, has signed a protocol of intentions with Brazil's Pernambuco state government on developing an LNG import terminal in the Brazilian port of Suape, it said on March 16.

Golar Power's plan envisages establishing Suape as a hub for LNG distribution in northeast Brazil. Access to gas will benefit the economies of Pernambuco's interior cities that lack pipeline access, it said.

Work will commence in the second half of 2020 on the project, which will include infrastructure for the supply of gas and LNG for electricity generation and to meet the demands of industries, commerce, LNG stations and households. Golar Power said it would work with local gas distributor Companhia Pernambucana de Gas Natural (Copergas) to bring gas to areas of the state that are not currently served by pipeline network.

The terminal will employ an existing LNG carrier, permanently docked at the port. LNG will be distributed to cities within a radius of up to 1,000 km in truck-mounted LNG ISO containers, at an initial rate of 800 m3/day, equivalent to 480,000 m3/day of natural gas. LNG will also be transported to other Brazilian states using small-scale LNG carriers.

The project's development will depend on regulatory approvals being secured and commercial agreements concluded. Golar Power will cover its capital cost.

In November Avenir LNG, a partnership between Golar LNG and fellow Norwegian firms Hoegh LNG and Stolt-Nielsen, announced it would collaborate with Golar Power on developing Brazil's small-scale LNG market. Stonepeak is an investor in Venture Global's US liquefaction projects.