Barcarena FSRU project : Golar Power, Norsk Hydro sign MoU for Brazilian LNG terminal
Barcarena FSRU project : Golar Power, an LNG-based transportation and downstream solutions provider, and Norwegian integrated aluminium company Norsk Hydro have signed a memorandum of understanding (MoU) for the supply of LNG from what will be the first LNG terminal in northern Brazil.
The Brazilian LNG terminal, which is slated to begin operations during the first half of 2022, will feature a floating storage regasification unit (FSRU). To be fully operated by Golar Power, the Barcarena FSRU project will supply imported liquefied natural gas to Norsk Hydro’s Alunorte refinery plant located near the Vila do Conde Port in the Barcarena municipality in Pará state.
Golar Power, which is a joint venture between Golar LNG and Stonepeak Infrastructure Partners, said that the Alunorte refinery will also become the first operational customer for the FSRU project in Barcarena.
The LNG infrastructure developer said that executing final agreements with Norsk Hydro will be a major step towards making a final investment decision (FID) on the Barcarena FSRU project within the coming four-to-six months.
The Barcarena FSRU project will supply LNG to Norsk Hydro’s Alunorte refinery (pictured). Photo courtesy of Norsk Hydro ASA.
John Thuestad – Norsk Hydro Bauxite and Alumina Vice-President, commenting on the Barcarena FSRU project, said: “Hydro is committed to sustainable best practices and we consistently invest in solutions to reduce our impact and bring benefits to neighbouring communities, as well as foster responsible industrial development. This LNG project will help make our operation more sustainable and will facilitate access to cleaner burning natural gas for other industries and consumers in the state of Pará.”
Besides supplying LNG to the Alunorte refinery, the LNG terminal will also supply fuel for a 605MW LNG-to-power Project, a $430 million combined cycle thermal power plant, in Barcarena to be developed by Centrais Eletricas Barcarena, a special purpose company controlled by Golar Power through a 50% stake.
In October 2019, Golar Power bagged a 25-year power purchase agreement (PPA) for the construction of the gas-fired power plant in Barcarena during the 2019 A-6 New Energy Auction held by the Brazilian National Electric Energy Agency (ANEEL).
According to Golar Power, once the Barcarena FSRU project is commissioned, it also anticipates operating a comprehensive LNG distribution network across Pará and the region.
Commenting on the Barcarena FSRU project, Eduardo Antonello – CEO of Golar Power said: “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. 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.”