Golar Power to make pipeline investment in Pernambuco state

Golar Power said it will invest US$2mn to develop a network of pipelines in Brazil’s Pernambuco state. 

The firm signed an LNG supply deal with local distributor Copergás on Wednesday, as part of the protocol of intent it closed with the state government to build a 1.8bn-real (US$364mn) LNG terminal at Suape port.  

The terminal will supply gas for electric power generation, industries, commerce, households, and vehicular gas stations far from the existing pipeline infrastructure. The first city to receive gas will be Petrolina. 

Copergás will be responsible for building a 40km pipeline, while Golar Power will build a regasification terminal with the capacity to receive 40,000m3/d, which will be transported through  ISO containers from Suape.   

On Thursday, Golar Power received the first 10 of the 70 ISO containers that will be used in the project.

The expectation is for operations to start during the first quarter of 2021. 

The firm is now seeking environmental and operational permits for the project and after they are granted it will look for financing, Golar Power VP for Latin America, Celso Silva, said at this week’s BNamericas webinar “LNG: The current trends in Latin America and the post-pandemic outlook.”

The company is also involved in the development of the Barcarena FSRU-to-power project in Pará state; the 1.5GW Porto de Sergipe I thermo plant, which is Latin America’s largest LNG-to-power project; and the Terminal Gás Sul regasification terminal in Santa Catarina state. 

Golar Power is also developing a small scale LNG distribution business through partnerships with BR Distribuidora and Galileo Technologies, taking advantage of the limited pipeline network, with access to only 5% of Brazil's municipalities.