Natural gas specialist Golar Power has announced plans to develop the first LNG terminal in the North of Brazil, paving the way for a comprehensive LNG fuelling network across the region.
The firm signed a Memorandum of Understanding with Norwegian state-owned energy firm Norsk Hydro, hailing it as a “major step towards one of the largest greenhouse gas reduction initiatives, globally”.
The new plant will initially focus on supplying fuel for Norsk Hydro’s Alunorte refinery plant near to Vila do Conde Port in the Municipality of Barcarena.
Comprehensive LNG network
Proposals outline plans for a comprehensive LNG distribution network across the state of Pará and the region.
“This LNG supply chain will cover an area larger than Eastern Europe and consist of thousands of kilometres of river and road transportation systems, serving numerous industrial, commercial, and transportation customers,” a spokesperson for Golar Power said.
Golar Power expects the new LNG supply chain to cover an area larger than Eastern Europe and consist of thousands of kilometres of river and road transportation systems, serving numerous industrial, commercial, and transportation customers.
“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,” Eduardo Antonello, CEO of Golar Power, said.
The project partners expect that the terminal will facilitate the replacement of LPG, diesel, fuel oil, and coal with approximately 1.8 million tonnes of LNG equivalent per annum.
“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,” John Thuestad, Hydro Bauxite and Alumina Vice-President at Norsk Hydro said.
The terminal will be complemented by the Barcarena FSRU that Golar Power plans to commission during the first half of 2022.
“The reduction in LNG prices we have seen in recent years has significantly increased LNGs relative competitive position... creating the foundation for a broader transition away from carbon-intensive energy sources in the region,” Golar Power said in a statement.