Golar project to grow LNG market in Amazon basin

Market: Electricity, Natural gas
23/10/19

Golar Power plans to distribute natural gas in the Amazon basin using excess capacity from its LNG-to-power project in Para state.

The project was awarded a 25-year power purchase agreement in Brazil's 18 October auction for new generation projects.

Golar Power, a 50:50 joint venture between Norway's Golar LNG and Stonepeak Infrastructure Partners, will operate the regasification terminal and provide the floating storage and regasification unit (FSRU).

The 605MW plant, which is being developed by Centrais Eletricas Barcarena (Celba), will use 3mn m3/d of gas when operating at full capacity. Celba is a joint venture between Golar Power and EBrasil Electricidade do Brasil.

Golar Power plans to begin operating the terminal in mid-2021, well before the start date of the thermoelectric plant, which has PPAs starting in January 2025.

Aluminium producer Hydro Alunorte, which recently received permission from the mines and energy ministry to import up to 2mn m3/d of LNG, is expected to be one of Golar Power's first clients in the region. Other potential buyers of gas from the project include aluminium producers Alubar and Albras, as well as fertilizer producer Yara Fertilizantes.

Golar Power plans to develop the gas market in northern Brazil, which has been "starving for cleaner and cheaper energy," according to Golar Power chief executive Eduardo Antonello. Antonello highlighted that the project has the potential to displace very large volumes of diesel, coal, LPG and heavy fuel oil consumption with LNG.

The terminal will act as a hub to distribute LNG and gas for power generation, industry, transport and bunkering. Construction is scheduled to begin in first half 2020.

Golar Power will be testing a similar model at its Porto de Sergipe LNG-to-power project in northeastern Brazil, which is being developed by Centrais Eletricas de Sergipe (Celse). Celse chief executive Pedro Litsek told Argus that the LNG-to-power project started commissioning several months ago and will begin heat tests in November. Golar plans to sell up to 200bn Btu/yr of excess regasification capacity on the regional market.

Golar Power is in discussions with Golar subsidiary Avenir to bring a 7,500m³ LNG carrier to Brazil to begin distribution of LNG in coastal regions of the northeast.

The company expects to begin generating revenues from the sale of LNG to third parties in northeastern Brazil in mid-2020.

Golar Power is also developing an LNG regasification project in Santa Catarina state in southern Brazil.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

14/04/25

IMO GHG pricing not yet Paris deal-aligned: EU

Brussels, 14 April (Argus) — The International Maritime Organisation's (IMO) global greenhouse gas (GHG) pricing mechanism "does not yet ensure the sector's full contribution to achieving the Paris Agreement goals", the European Commission has said. "Does it have everything for everybody? For sure, it doesn't," said Anna-Kaisa Itkonen, the commission's climate and energy spokesperson said. "This is often the case as an outcome from international negotiations, that not everybody gets the most optimal outcome." The IMO agreement reached last week will need to be confirmed by the organisation in October, the EU noted, even if it is a "strong foundation" and "meaningful step" towards net zero GHG emissions in global shipping by 2050. The commission will have 18 months following the IMO mechanism's formal approval to review the directive governing the bloc's emissions trading system (ETS), which currently includes maritime emissions for intra-EU voyages and those entering or leaving the bloc. By EU law, the commission will also have to report on possible "articulation or alignment" of the bloc's FuelEU Maritime regulation with the IMO, including the need to "avoid duplicating regulation of GHG emissions from maritime transport" at EU and international levels. That report should be presented, "without delay", following formal adoption of an IMO global GHG fuel standard or global GHG intensity limit. Finland's head representative at the IMO delegation talks, Anita Irmeli, told Argus that the EU's consideration of whether the approved Marpol amendments are ambitious enough won't be until "well after October". Commenting on the IMO agreement, the European Biodiesel Board (EBB) pointed to the "neutral" approach to feedstocks, including first generation biofuels. "The EBB welcomes this agreement, where all feedstocks and pathways have a role to play," EBB secretary general Xavier Noyon said. Faig Abbasov, shipping director at non-governmental organisation Transport and Environment, called for better incentives for green hydrogen. "The IMO deal creates a momentum for alternative marine fuels. But unfortunately it is the forest-destroying first generation biofuels that will get the biggest push for the next decade," he said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Shale patch on edge after tariff drama

14/04/25

News

14/04/25

Shale patch on edge after tariff drama

New York, 14 April (Argus) — US president Donald Trump's back and forth over tariffs that sent oil prices tumbling to a four-year low last week has sparked jitters across the shale patch, although most producers are likely to take their time to respond. The oil and gas industry, one of Trump's biggest cheerleaders and donors during his election campaign, has been taken aback by the speed and scale of the president's escalating trade wars and executives are signalling growing impatience. Meanwhile, Trump's "Drill, baby, drill" mantra is even less likely to become a reality now, after oil slid below the $65/bl level that executives surveyed by the Dallas Federal Reserve Bank last month warned was needed to profitably sink a new well. Trump's imposition of punitive tariffs on nearly every major US trading partner led to a sell-off in stock, bonds and commodity markets until he announced a 90-day pause for most nations — except China — on 9 April. While it may be too early for talk about dropping rigs and curtailing production, companies will face tough questions from analysts about their contingency plans when first-quarter results start coming through later this month. One key difference from previous downturns in 2014 and 2020 is that exploration and production (E&P) firms are in a better position this time, with less debt on their balance sheets and more modest growth plans, which may help limit the initial fallout. But higher costs owing to tariffs on steel imports could offset the efficiency savings that have kept production going in an era of restrained spending. "E&Ps are likely to mostly take a wait-and-see approach — with a high level of uncertainty about future policy — and not prematurely lay down rigs," consultancy Enverus principal analyst Andrew Dittmar says. "If prices are weak headed into 2026, that is where you are likely to see a more material reduction in drilling budgets. Feeling dominated The shale industry has welcomed Trump's "energy dominance" agenda and his promise of a permitting overhaul. But cracks are appearing in that relationship because of his stop-start policy on tariffs. "This administration better have a plan," Diamondback Energy president Kaes Van't Hof said in a social media post, in a direct appeal to energy secretary Chris Wright. Shale is the "only industry that actually built itself in the US, manufactures in the US, grew jobs in the US and improved the trade deficit — and by proxy GDP — in the US over the past decade", Van't Hof, who is due to become Diamondback chief executive later this year, said. His company became the largest pure-play producer in the prolific Permian basin of west Texas and southeast New Mexico following its $26bn takeover of Endeavor Energy Resources last year. While few public producers were planning any kind of meaningful growth this year as higher dividends and buy-backs continue to be the priority, even that could eventually find itself on the chopping block. "The corporate reality for public players means that already modest growth could be at risk if prices remain near $60/bl," Rystad Energy vice-president for North American oil and gas Matthew Bernstein says. Little in the way of growth was forecast outside the core Permian this year even before Trump rolled out his tariffs. A prolonged period of lower prices could spur a downturn in the top-performing US basin. A combination of short-term activity levels, investor distributions and production could be sacrificed in order to defend margins, according to Rystad. And producers in the Delaware sub-basin could be especially vulnerable, given the region's steep initial decline rates, high well costs and large capital return requirements, the consultancy says. By Stephen Cunningham WTI breakeven price Nymex WTI futures month 1 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Japan’s Renova boosts renewable power sales in March

14/04/25

News

14/04/25

Japan’s Renova boosts renewable power sales in March

Tokyo, 14 April (Argus) — Japanese renewable energy developer Renova's electricity sales rose in March from a year earlier, according to data published by the company on 11 April. Renova sold around 256GWh of renewable electricity in March, including solar, biomass, and geothermal. This is up by around 26pc from the same month in 2024. Electricity sales generated by biomass-fired power plants totalled around 222GWh in March. Ronova's biomass-fired power capacity was 395GW with six plants at the end of March. The company sells electricity from the 75MW Sendai Gamo plant, the 75MW Kanda plant, the 75GW Omaezaki Kou plant, and the 75MW Tokushima Tsuda plant under Japan's feed in tariff (FiT) scheme. Electricity generated by the 75MW Ishinomaki Hibarino plant and the 21MW Akita plant is sold under the county's feed in premium (FiP) scheme, based on long-term power purchase agreements (PPAs). Renova delayed the start-up of the 50MW Karatsu plant in southern Japan's Saga prefecture, which is expected to generate up to 350GWh/yr of electricity, from March to September 2025 because of technical issues. The plant will sell electricity under the FiP scheme based on a long-term PPA with its client from the beginning of commercial operations, according to the company. By Takeshi Maeda Renova's biomass-fired electricity sales in March 2025 Capacity (MW) Electricity sales (GWh) Start of operations Akita 21 13 Jul-16 Ishinomaki Hibarino 75 37 Mar-24 Sendai Gamo 75 51 Nov-23 Tokushima Tsuda 75 41 Dec-23 Omaezaki Kou 75 30 Jan-25 Kanda 75 50 Jun-21 Total 395 222 Source : Renova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Brunei LNG undergoes unplanned downtime

14/04/25

News

14/04/25

Brunei LNG undergoes unplanned downtime

Singapore, 14 April (Argus) — Brunei's 7.2mn t/yr Brunei LNG export terminal experienced an operational upset on 11 April, but there were no reported injuries or damages to its assets, the firm said in a notice. "Normalisation process is currently in progress," the firm added. Visible flaring and black smoke from the plant may be observed during this time, but the situation is under control and poses no risk to the surrounding community or environment, the firm reported. Brunei LNG cancelled its tender offering a cargo on a fob basis for loading on 22 June , likely as a result of the operational upset. The tender was initially due to close on 17 April. It is still uncertain when the export terminal will resume normal operations. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US tariffs cast a shadow on global gas market

11/04/25

News

11/04/25

US tariffs cast a shadow on global gas market

Steel can make up nearly a third of an LNG terminal's pricetag, so the new levies could push up costs and push back start-up dates, writes Xiaoyi Deng London, 11 April (Argus) — US president Donald Trump's volatile tariff policy and some of the countermeasures already announced by large trade partners are unlikely to cause any direct disruption to global gas markets. But they will have a direct impact on future US liquefaction capacity. And the indirect effects on gas supply and demand could be huge, stemming from a weaker macroeconomic outlook, fuel substitution and inflationary pressures on infrastructure development. US LNG developers hailed Trump's return to office, after complaining that his predecessor complicated the issuance of additional export licences. But Trump's imposition of 25pc tariffs on all foreign-sourced steel and aluminum, from 12 March, will increase infrastructure costs in the US' upstream and midstream sectors. These present an immediate risk for US LNG developers, particularly for the five projects under construction and the six others expected to reach final investment decisions (FIDs) this year. Metals account for up to 30pc of the cost of an LNG export plant. A terminal can cost $5bn-25bn to build, depending on its size, with steel used for pipelines, tanks and other structural frameworks. Facilities can be built using some domestically produced metal, but higher prices for this might lead to construction and FID delays for the country's planned liquefaction projects. US tariffs' primary effect on the domestic gas market stems from duties levied on non-energy goods used by the oil and gas industry, including steel and specialised pipeline components such as valves and compressors, which are imported. The US remains a net natural gas importer from Canada , but these flows are unlikely to be affected by trade tariffs, given the lack of alternative supply sources available to some northern US states. Tariff baiting Trump's latest tariff round , unveiled on 2 April, involves a a minimum 10pc on all foreign imports from 5 April,with much higher tariffs on selected countries that briefly came into force on 9 April, before Trump bowed to panic in financial markets and announced a 90-day pause. China is the key exception. It has announced retaliatory tariffs that could disrupt US energy exports, resulting in an escalation that leaves the overall levy at 145pc in the US and 125pc in China. China had already stopped importing US LNG earlier this year. But disruption to trade between the world's two largest economies may weigh heavily on manufacturing activity in China, in turn reducing industrial gas demand. And the ripple effects of disruption to US LPG exports to China may alter fuel-switching economics in the region and beyond. Most other countries in Asia-Pacific have opted not to follow China's lead by retaliating. The Japanese government intends to negotiate a better tariff deal and is considering investing in the US' proposed 20mn t/yr Alaska LNG export project as part of wider efforts to reduce its trade surplus with the US. Countries in Asia-Pacific have been hit with some of the highest of Trump's targeted duties. The EU is keeping retaliatory measures on the table, but these are unlikely to involve US LNG. Europe has become much more reliant on LNG imports after losing the bulk of its Russian pipeline supply, and imposing tariffs on energy imports would only reignite inflationary pressures that European countries have tried to curb over the past three years. The bloc says it is ready to negotiate on possibly increasing its US LNG imports to reduce its trade surplus and would axe tariffs on industrial imports if the US agrees to do the same. But Trump says this is not enough, citing the EU's upcoming Carbon Border Adjustment Mechanism as one of the "unfair trade practices" that justifies a tariff response. US LNG project pipeline mn t/yr Project Capacity Expected start/FID Under construction Plaquemines 19.2 2025 Corpus Christi stage 3 12.0 2025 Golden Pass 18.1 2026 Rio Grande 17.6 2027 Port Arthur 13.5 2027 Waiting for final investment decision Delfin FLNG 1 13.2 mid-2025 Texas LNG 4.0 2025 Calcasieu Pass 2 28.0 mid-2025 Corpus Christi train 8-9 3.3 2025 Louisiana LNG 16.5 mid-2025 Cameron train 4 6.8 mid-2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more