Golar executes MoU with Norsk Hydro for Para LNG terminal

Golar Power Ltd., a joint venture between Golar LNG Ltd. and Stonepeak Infrastructure Partners, has executed a memorandum of understanding with Norsk Hydro to develop the first LNG regasification terminal in northern Brazil. The 2-million tonne/year project will supply natural gas to Norsk Hydro’s Alunorte refinery, close to Vila do Conde Port in Barcarena, State of Pará, Brazil.

Alunorte will be the first operational customer for the Barcarena floating storage and regasification unit Golar Power plans to bring into operation first-half 2022. Concluding final agreements with Norsk Hydro will therefore be an important step toward a final investment decision (FID) within the next 4-6 months.

The LNG terminal will also supply gas to the Centrais Elétricas Barcarena 605-Mw thermal power plant, a subsidiary of Golar Power. Once the terminal becomes operational, Golar Power expects to operate a comprehensive LNG distribution network across the state of Pará and the region. This LNG supply chain will consist of thousands of kilometers of river and road transportation, serving industrial, commercial, and transportation customers.

Golar Power estimates a potential for replacing 1.8 million tons of LNG equivalents/year of LPG, diesel, fuel oil, and coal with the terminal. The project will fulfill Norsk Hydro’s 2017 commitment to the Pará state government to pursue a natural gas-based energy solution for one of the world’s largest aluminum plants.