Companhia de Gás do Pará (GdP) has signed a Memorandum of Understanding (MOU) with an affiliate of Hygo Energy Transition Ltd.

The MOU establishes that Hygo and GdP will explore the local market potential and that Hygo will supply natural gas and LNG to GdP once the negotiations and contracts are finalised.

Hygo will utilise the Barcarena terminal to supply the volumes. Construction of the Barcarena terminal is expected to start shortly, with operations to commence in the first half of 2022.

Hygo estimates the potential for replacing approximately 1.8 million tpy of LNG equivalents, including LPG, diesel, fuel oil, and coal from the terminal.

The LNG demand for power generation is also significant. Hygo has secured 25-year power purchase agreements (PPAs) for a 605 MW power station in the region, which adds 0.6 million tpy of LNG demand to the Barcarena terminal, starting in January 2025.

This power station will be configured with the ability to run with a blend of up to 50 percent of Hydrogen. Hygo also expects to utilise the Barcarena LNG terminal to provide an LNG supply solution to the new regional power auction.

Hygo said the MOU is a result of its “continued efforts to reduce energy costs and support environmentally responsible and sustainable industrial growth in the Amazon region”, and especially in the State of Pará, Brazil.

Fabio Amorim, commercial director of GdP said: “The MOU is an important step towards introducing natural gas to the Para state. The Barcarena LNG terminal will transform the fuel supply in the region, and our clients will have an affordable solution to reduce their environmental footprint. The large industries established in the region and the environment will be the most benefited from this initiative.”

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20th October 2020