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.
