A GOLAR LNG joint venture has been awarded a 25-year power purchase agreement (PPA) for the use of floating storage regasification units (fsru) for LNG power generation, laying the foundation for a new "energy hub" in northern Brazil.
GOLAR power is a 50 / 50 joint venture between GOLAR LNG and stonepeak infrastructure partners, which has obtained the power purchase agreement from the Brazilian national electricity authority to build a 605 megawatt combined cycle thermal power plant.
The LNG power project will be developed by centrais eletricas Barcarena, 50% owned by GOLAR power. The 605 megawatt power plant, located in Barcarena, Parana, Brazil, will use imported LNG to generate electricity through a class h gas turbine, which will then be distributed to the Brazilian national grid through an existing substation.
The total investment of the project is US $430 million, of which US $107 million is from GOLAR LNG, which will be financed through debt and equity combination between 2022 and 2025. The equity portion will come from the proceeds of the first small-scale issuance of GOLAR power.
According to the power purchase agreement, GOLAR power plans to accelerate the investment progress of a new LNG terminal also located in the port of Barcarena Vila do Conde. GOLAR power, its operator, will supply the terminal with a fsru for 25 years. Considering that the power plant will be put into operation in the middle of 2021, the terminal will be used as a small LNG distribution hub before that.