Golar Power signs a Protocol of Intentions with the State Government of Pernambuco to develop an LNG import terminal in the P...
March 16 2020 - 9:53AM
Golar Power Limited (“Golar Power”) signed on
March 13 a Protocol of Intentions with the State Government of
Pernambuco to develop an LNG import terminal in the Port of Suape
(Suape), located in the northeast of Brazil. With operations
scheduled to start in the second half of 2020, the project includes
infrastructure for the supply of natural gas and LNG to generate
electricity, in addition to meeting the demands of industries,
commerce, LNG stations and households. To this end, Golar Power
will work in partnership with the local gas distribution company,
Companhia Pernambucana de Gás Natural (Copergás) to bring natural
gas to regions of the State that are not yet served by traditional
pipeline networks. The project is expected to use the existing port
infrastructure owned by the State Government.
The State of Pernambuco has an estimated
population of 9.6million people which will benefit from the
installation of the terminal. If successfully developed the
terminal is expected to benefit the economy of cities in the
interior of the State, in regions not served by
pipeline, where natural gas will be delivered by
road using LNG ISO-Containers. Golar Power plans the
interiorization of LNG in the country through a strategic plan that
contemplates the Northeast as a priority region for small-scale
distribution. Suape is already Brazil's largest hub for liquid bulk
and gases and, now, it will be one of the main LNG distribution
hubs in the Northeast, with full integration of sea and land
transportation modes.
The Golar Power terminal intends to use an
existing LNG carrier, permanently docked at the Suape Port. The
vessel will act as a supplier to truck mounted LNG ISO-Containers.
These vehicles will then distribute LNG to cities within a radius
of up to one thousand kilometers. Initial trucked
volumes are estimated at 800 m3 of LNG / day, equivalent to
approximately 480,000 m3 of natural gas per day. LNG will also
be distributed from Suape to other states in Brazil, through
cabotage using small-scale LNG carriers that will be supplied by
transhipment and used to transport LNG to other ports in the
region. Capex requirements for the project are expected to be
funded from Golar Power’s internal resources and operating cash
flow.
Final development of the project remains
dependent upon regulatory approvals and conclusion of commercial
agreements.
Hamilton, Bermuda
March 16, 2020
Enquiries:
Golar Management Limited: + 44 207 063 7900
Eduardo Maranhao
Stuart Buchanan
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