Golar Power, a joint venture between Golar LNG and Stonepeak Infrastructure Partners, has executed a memorandum of understanding with Norsk Hydro to develop the first LNG terminal in the north of Brazil.
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 Barcarenal.
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.
A final investment decision on the project is expected this year.
The LNG terminal aims to supply gas to Alunorte and also to the Centrais Elétricas Barcarena thermal power plant, which is a subsidiary of Golar Power, previously contracted under a 25-year contract.
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.
“We are delighted to be helping Norsk Hydro achieve its ambitious global sustainability goal of reducing CO2 emissions by 30% 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,” said Eduardo Antonello, CEO of Golar Power.
Golar Power estimates a potential for replacing approximately 1.8m tons of LNG equivalents per annum of LPG, diesel, fuel oil, and coal with the terminal.