Golar Power and the State Government of Pernambuco have signed a protocol of intentions to develop an LNG import terminal at the Port of Suape in northeast Brazil. The project will include infrastructure to supply natural gas and LNG to generate electricity, along with meeting the demands of industries, commerce, LNG stations and households.
The state government will provide the use of its existing port infrastructure. An LNG carrier is currently docked permanently at the Port of Suape, which the terminal aims to use to supply gas to truck-mounted LNG ISO-Containers.
Local gas distribution company Companhia Pernambucana de Gás Natural (Copergás) will partner with Golar Power to supply natural gas to regions of the state outside the traditional pipeline networks.
The gas will be loaded into LNG ISO-Containers and delivered by road to cities in Suape and beyond within a radius of up to 1,000 km, with an estimated 9.6 million people expected to benefit from the project. Golar LNG estimates it will truck an initial volume of 800 cubic meters of LNG per day, equivalent to around 480,000 cubic meters of natural gas.
Golar Power will use its internal resources and operating cash flow to fund the project’s Capex requirements with final development of the project will begin once regulatory approvals and commercial agreements are finalized, with operations scheduled to start in the second half of 2020.
