Golar, Norsk Hydro Sign Brazilian LNG MoU

Golar Power, a joint venture between Bermuda-registered Golar LNG and US-based Stonepeak Infrastructure Partners, said on July 23 it had signed a memorandum of understanding (MoU) with Norsk Hydro to build northern Brazil's first LNG import terminal. Brazil has already used Golar's floating LNG vessels to generate electricity when hydro power is scarce.

Norsk Hydro's Alunorte aluminum refinery near the port of Vila do Conde, in Brazil's Para state, will be first customer of the proposed floating storage and regasification unit (FSRU), which Golar Power aims to bring on stream in the first half of 2022. Finalising contracts with Norsk Hydro will pave the way for a final investment decision on the project to be taken within the next four to six months, Golar Power said.

The FSRU will also serve the 605-MW Centrais Eletricas Barcarena thermal power plant, which Golar Power was awarded a 25-year power purchase agreement for in October last year. Golar Power also wants to roll out an extensive LNG distribution network across the Para state and the wider region, to provide gas to industrial, commercial and transportation customers.

Norsk Hydro made a commitment to the Para government to run the Alunorte plant on gas in 2017. The conversion will cut greenhouse gas and particulate emissions significantly at the plant, which is one of the largest of its kind in the world, Golar Power said. Norsk Hydro has pledged to reduce greenhouse gas emissions across its business by 30% by 2030.

Golar Power has forged a number of partnerships for its planned foray into Brazil's gas market. In November last year it reached a deal with Norway's Hoegh LNG and Stolt-Nielsen on jointly developing the country's small-scale LNG market. And earlier this year it signed a protocol on constructing an import terminal at the Brazilian port of Suape.

Golar Power has also made a pact to use gas tech firm Galileo Technologies' solutions for gas conditioning, distributed LNG production, LNG filling stations and regasification plants in Brazil. Galileo's Cryoboxes are used in North America by Edge LNG to capture gas from stranded wells, liquefy it, and truck it to market.