Bermuda-based shipowner&Golar has the exclusive right to provide a floating storage regasification unit (FSRU) to a proposed power project in northeastern Brazil, according to the company.
Golar stated in its interim results on 27 August that the company has negotiated a right to take up to 25% equity in the project, which is underpinned by a 1.5GW combined-cycle gas power plant recently awarded a power provider agreement (PPA) in the state of Sergipe by the Brazilian government.
“The partners are currently working through the permitting process and are in negotiations with LNG providers, contractors and financiers,” according to the statement by Golar..
Golar also indicated further potential interest in the project, possibly as capacity holder in the import volumes or by providing the volumes as well.
“This is a sort of development of our thinking so clearly it’s attractive for us to secure employment opportunities for FSRUs. Interestingly for this project, there is the possibility to contemplate the capacity in the FSRU and also the possibility to contemplate the delivery of LNG to the FSRU,” said Golar chief executive officer Gary Smith.
Smith said that Golar’s separate efforts to developing floating liquefaction projects in Cameroon, Equatorial Guinea and possibly other locations were not specifically linked to the Brazilian project.
The move would align with plans with Brazil-based Gen Power Group for its 1.5GW Sergipe power project, which was awarded a 25-year PPA through Brazil’s A-5 power auctions in April this year.
An estimated reais 3.2bn ($866m) is expected to be invested in the project.
Representatives for GenPower could not be reached for comment.
Market sources said Anglo Dutch Shell was heard to be a preferred supplier to the GenPower proposal. However, this could not be immediately confirmed.
A spokesperson for Shell declined to comment.
Sergipe is one of several proposed import projects backed by private power companies in Brazil. At present, only state-run energy company Petrobras imports LNG on a spot basis through one of its three chartered FSRUs.
Petrobras is understood to be continuing to consider opening up its underutilised capacity in its FSRUs to third-party companies to import LNG independently, although talks are ongoing.
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