Hygo Energy Transition, formerly known as Golar Power, will no longer supply liquefied natural gas (LNG) to Norway’s Hydro under an initial deal signed in July, Kallanish Energy reports.

The companies mutually terminated on Monday the Memorandum of Understanding (MoU) they signed earlier this year, without providing details of the decision.

Under the deal, Golar Power would supply LNG to Hydro’s Alunorte alumina refinery in Barcarena, northern Brazil. Upon a final supply agreement, Alunorte would adapt part of its process to switch from fuel oil to LNG, reducing its carbon emissions. The LNG would be imported via a newly built terminal in Para state, slated to start operations in the first half of 2022.

Hydro said in a statement on Monday the MoU termination was “based on the provisions of the agreement.” It added it remain committed to pursue natural gas as an energy source for the Alunorte refinery and “will continue discussions with interested parties.”

A spokesman at Hydro couldn’t provide further details into the decision, but told Kallanish Energy that future supply negotiations “could potentially include Golar Power/Hygo, but would require a new process and decision.”

Hygo noted that despite the termination of the existing MoU, its plans to build the first LNG import terminal in Brazil’s northern region “will not be affected.” The company said it remains committed to the Barcarena Terminal and construction should start “shortly.”

The announcement comes as Hygo appointed Paul Hanrahan as its new CEO, following the resignation of Eduardo Antonello, who has been involved in corruption allegations in Brazil.  

Antonello is stepping down immediately as he wishes “to protect and isolate Hygo from any misleading interpretation caused by recent allegations,” Hygo said in a statement.

This post appeared first on Kallanish Energy News.