A protocol of intentions has been signed by the Pernambuco government and Golar Power (a joint venture between Golar LNG and Stonepeak Infrastructure Partners) to develop an LNG import terminal in the Port of Suape, which is in the north east of Brazil.
The new terminal (which is expected to owned by the State Government) includes infrastructure for the supply of natural gas and LNG to generate electricity, as well as meeting the demands of industries, commerce, LNG stations and households, Golar said in a statement announcing the move.
Operations are scheduled to start in the second half of 2020, when Golar Power said it will work in partnership with the local gas distribution company, Companhia Pernambucana de Gás Natural (known as Copergás). Together they plan to use the existing port infrastructure, with the aim of bringing LNG and natural gas to regions that don’t currently have traditional pipeline networks. The idea is that natural gas will be delivered to these regions by road, using LNG ISO-Containers.
The Golar Power terminal will use an existing LNG carrier that is permanently docked at the Suape Port. This will act as a supplier to truck-mounted LNG ISO-Containers, which will distribute LNG to cities within a radius of up to 1,000 kilometres.
Initial trucked volumes are estimated at 800 cubic meters of LNG a day, which is the equivalent of approximately 480,000 cubic meters of natural gas a day.
Golar Power added that LNG will also be distributed from Suape to other states in Brazil, through cabotage using small-scale LNG carriers that will be supplied by transshipment and used to transport LNG to other ports in the region.
The statement said Capex requirements for the project are expected to be funded by Golar Power’s internal resources and operating cash flow.
For more information visit www.golarlng.com