Golar Power is set to kick-off its operations with the deployment of a newbuilding floating, storage and regasification unit (FSRU) in Brazil.
The newly formed joint venture of Golar LNG and Stonepeak Infrastracture Partners has taken a final investment decision on the Porto de Sergipe project, which involves the largest thermal power station in South America.
In connection with the development of the power plant, Golar Power has locked the Golar Nanook into a 25-year charter, starting after its delivery in November 2017.
An annual EBITDA contribution of $39m is expected to be generated from this charter.
Eduardo Antonello, chief executive of Golar, said: “We are very enthusiastic with the final investment decision of Porto de Sergipe and fully committed to deliver the plant and terminal in accordance with the original budget and schedule.
“The project shows very solid economics and provides a strong financial foundation for Golar Power.
“We see a huge market to develop cheaper and cleaner energy solutions.”
The capital expenditure for the Porto de Sergipe project will amount to BRL 4.3bn ($1.3bn), while Golar Power has increased its ownership in the plant from 25% to 50%.
Golar LNG was formed in June from the cooperation of Golar LNG and Stonepeak, which committed a total equity funding of $165m.
