Golar Power, a joint venture between Golar LNG and Stonepeak Infrastructure Partners, signed a MoU with Norsk Hydro to develop the first LNG terminal in the North of Brazil, a major step towards one of the largest greenhouse gas reduction initiatives, globally.
The project will enable the supply of LNG to Norsk Hydro’s Alunorte refinery plant located close to the Vila do Conde Port in the Municipality of Barcarena, State of Pará, Brazil. Alunorte will also be the first operational customer for the Barcarena FSRU that Golar Power plans to bring into operation during the first half of 2022. Concluding final agreements with Norsk Hydro will therefore be an important step toward a Final Investment Decision within the next 4 to 6 months.
The LNG terminal aims to supply gas to Alunorte and also to the Centrais Elétricas Barcarena 605 MW thermal power plant, which is a subsidiary of Golar Power, previously contracted under a 25-year PPA. Once the terminal becomes operational, Golar Power also expects to operate a comprehensive LNG distribution network across the state of Pará and the region. This LNG supply chain will cover an area larger than Eastern Europe and consist of thousands of kilometres of river and road transportation systems, serving numerous industrial, commercial, and transportation customers.
The project will fulfil Norsk Hydro’s 2017 commitment to the Pará state government to pursue a natural gas-based energy solution for one of the world’s largest aluminium plants.
CEO of Golar Power, Eduardo Antonello, commented: “We are delighted to be helping Norsk Hydro achieve its ambitious global sustainability goal of reducing CO2 emissions by 30 per cent by 2030, and at the same time contributing to a significant reduction in energy prices and environmental emissions within the entire North Region of Brazil. The project should have the potential to significantly reduce energy costs, support environmentally responsible and sustainable industrial growth throughout this immense region, and facilitate the unlocking of its unique natural resource endowment and economic potential. Golar Power estimates a potential for replacing approximately 1.8 million tons of LNG equivalents per annum of LPG, diesel, fuel oil, and coal with the terminal – creating the foundation for a broader transition away from carbon-intensive energy sources in the region.”