Golar Power has identified the LNG carrier it plans to use for a new BRL 1.8bn ($371m) import project in Brazil.
The company, which is a joint venture between Golar LNG and Stonepeak Infrastructure Partners, said it signed a "protocol of intent" Friday with the government of Pernambuco for an LNG terminal in the port of Suape.
Golar Power said 135,000-cbm LNG carrier Golar Mazo (built 2000) will be permanently moored at a pier in the port, which is in the city's industrial zone.
Operations are due to begin in November, the company said.
The Moss-type, steam-turbine Golar Mazo, which was built specifically for the trade between Indonesia and Taiwan, has been idling in east Malaysia for some time. LNG shipowners described the vessel as being in a state of "warm lay-up".
Local reports state that the ship will be used to supply LNG by truck to the wider northeast region of Brazil within a radius of up to a thousand kilometres.
The local government said the flow by truck will reach a volume of 800-cbm of LNG per day.
In a second phase, smaller 7,500-cbm LNG carriers will provide further regional distribution, the government said. Golar Power has already chartered in one 7,500-cbm LNG newbuilding from Avenir LNG.
In a third phase Golar, which is partnering with local utility Pernambuco Natural Gas Company (Copergas) on the project, would install regasification equipment for the LNG being imported.
Golar Power said the project in Ipojuca, Pernambuco state will allow it to provide natural gas supply infrastructure for electricity generation for both industrial and domestic use, while supply both compressed natural gas and LNG stations.
This looks set to be Golar Power's third LNG to Power project in Brazil.
This month Golar Power is due to fire up its Sergipe power plant in Brazil which is utilising the floating storage and regasification unit Golar Nanook (built 2017) to import LNG.
In October Golar announced that its power arm had signed a 25-year power purchase agreement to develop a 605MW combined cycle thermal power plant in Barcarena in Para state that will utilise a floating storage and regasification unit.
Here the company plans to locate an FSRU at the Port of Vila do Conde. The company's regas unit Golar Spirit, which is currently laid up, has previously been tipped for this business.
The terminal is due to start operations by mid-2021.
