Liquefied natural gas shipping company, Golar LNG, has revealed plans to develop an LNG import terminal in the Port of Suape, to meet power generation demand in Brazil’s northeastern region, Kallanish Energy reports.
Its subsidiary Golar Power said on Monday it signed a Protocol of Intentions with the state government of Pernambuco last week. The project would include infrastructure for the supply of natural gas and LNG, through existing infrastructure and a tanker permanently docked at the port.
The vessel will feed trucks mounted with LNG ISO-containers, for road distribution to areas not served by pipelines. Initial trucked volumes are estimated at 800 cubic meters per day (cm/d) of LNG, which is the equivalent to roughly 480,000 cm/d of natural gas.
Golar Power will partner with local gas distribution company Copergas to bring natural gas to regions not connected to the network, meeting demand of industries, commerce, LNG stations and households. A final investment decision is pending on regulatory approvals, as wells as the conclusion of commercial agreements.
“Golar Power plans the interiorization of LNG in the country through a strategic plan that contemplates the Northeast as a priority region for small-scale distribution,” it said in a statement. “Suape is already Brazil’s largest hub for liquid bulk and gases and, now, it will be one of the main LNG distribution hubs in the Northeast, with full integration of sea and land transportation modes.”
The project would start operations in the second half of 2020, the company said, without disclosing further details such as costs and import capacity.
This post appeared first on Kallanish Energy News.