Golar Power takes major step towards one of world’s largest GHG reduction initiatives
July 23 2020 - 8:00AM
Golar Power Limited (“Golar Power”), a joint
venture between Golar LNG Limited (NASDAQ ticker: GLNG) and
Stonepeak Infrastructure Partners, is pleased to announce today the
execution of a Memorandum of Understanding with Norsk Hydro to
develop the first LNG terminal in the North of Brazil, a major step
towards one of the largest greenhouse gas reduction initiatives,
globally.
The project will enable the supply of LNG to
Norsk Hydro’s Alunorte refinery plant located close to the Vila do
Conde Port in the Municipality of Barcarena, State of Pará, Brazil.
Alunorte will also be the first operational customer for the
Barcarena FSRU that Golar Power plans to bring into operation
during the first half of 2022. Concluding final agreements with
Norsk Hydro will therefore be an important step toward a Final
Investment Decision within the next 4 to 6 months.
The LNG terminal aims to supply gas to Alunorte
and also to the Centrais Elétricas Barcarena 605 MW thermal power
plant, which is a subsidiary of Golar Power, previously contracted
under a 25-year PPA. Once the terminal becomes operational, Golar
Power also expects to operate a comprehensive LNG distribution
network across the state of Pará and the region. This LNG supply
chain will cover an area larger than Eastern Europe and consist of
thousands of kilometres of river and road transportation systems,
serving numerous industrial, commercial, and transportation
customers.
The project will fulfil Norsk Hydro’s 2017
commitment to the Pará state government to pursue a natural
gas-based energy solution for one of the world’s largest aluminium
plants. The project will enable the use of cleaner burning natural
gas from LNG, and, consequently, reduce annual greenhouse gas and
particulate emissions substantially.
CEO of Golar Power, Eduardo Antonello,
commented:
“We are delighted to be helping Norsk Hydro
achieve its ambitious global sustainability goal of reducing CO2
emissions by 30% by 2030, and at the same time contributing to a
significant reduction in energy prices and environmental emissions
within the entire North Region of Brazil. The project should have
the potential to significantly reduce energy costs, support
environmentally responsible and sustainable industrial growth
throughout this immense region, and facilitate the unlocking of its
unique natural resource endowment and economic potential. Golar
Power estimates a potential for replacing approximately 1.8 million
tons of LNG equivalents per annum of LPG, diesel, fuel oil, and
coal with the terminal – creating the foundation for a broader
transition away from carbon-intensive energy sources in the region.
The reduction in LNG prices we have seen in recent years has
significantly increased LNGs relative competitive position, not
only versus diesel and fuel oil, but also now coal. The Norsk Hydro
project illustrates the economic and environmental benefits which
can be achieved by global industry and mining companies by
transitioning their energy sourcing to LNG. This trend creates a
massive opportunity for Golar Power to replicate the initiative in
different countries over the years to come.”
John Thuestad, Hydro Bauxite and Alumina
Vice-President said:
“Hydro is committed to sustainable best
practices and we consistently invest in solutions to reduce our
impact and bring benefits to neighbouring communities, as well as
foster responsible industrial development. This LNG project will
help make our operation more sustainable and will facilitate access
to cleaner burning natural gas for other industries and consumers
in the state of Pará.”
The planned transition from heavy fuel oil to
LNG will not only underpin the long-term future of the Alunorte
facility and the many thousands of jobs that it supports, but also
be an important springboard for the rapid start-up of small-scale
LNG distribution operations.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking
statements (as defined in Section 21E of the Securities Exchange
Act of 1934, as amended) which reflects management’s current
expectations, estimates and projections about its operations. All
statements, other than statements of historical facts, that address
activities and events that will, should, could or may occur in the
future are forward-looking statements. Words such as “may,”
“could,” “should,” “would,” “expect,” “plan,” “anticipate,”
“intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,”
“potential,” “continue,” or the negative of these terms and similar
expressions are intended to identify such forward-looking
statements.
These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
other factors, some of which are beyond our control and are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Unless legally required, Golar LNG Limited
and Golar Power undertake no obligation to update publicly any
forward-looking statements whether as a result of new information,
future events or otherwise.
As a result, you are cautioned not to rely on
any forward-looking statements. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Golar LNG Limited and Golar Power undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise unless required by law.
Hamilton, Bermuda
July 23, 2020
Enquiries:
Golar Management Limited: + 44 207 063 7900
Eduardo Maranhao
Stuart Buchanan
Golar LNG (NASDAQ:GLNG)
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