Hygo firms agreement with Pará state distribution company to use the Barcarena Terminal to supply the regional demand for cl...
October 14 2020 - 8:59AM
Golar LNG Limited, today announced that an
affiliate of Hygo Energy Transition Limited (“Hygo”) executed a
Memorandum of Understanding (“MOU”) with Companhia de Gás do Pará
(“GdP”). The MOU is a result of Hygo’s continued efforts to reduce
energy costs significantly and support environmentally-responsible
and sustainable industrial growth in the immense Amazon region, and
especially in the State of Pará.
GdP is the regulated Local Distribution Company
(“LDC”) that has the exclusive rights to distribute natural gas in
the state of Pará, Brazil. The MOU establishes that Hygo and GdP
will explore the local market potential and that Hygo will supply
natural gas and LNG to GdP once the negotiations are finalized, and
the contracts are executed. Hygo will utilize the Barcarena
Terminal, the only one permitted in this isolated region, to supply
the volumes. The Barcarena Terminal construction is expected to
start shortly with operations to commence in the first half of
2022.
Fabio Amorim, Commercial Director of GdP said:
“The MOU is an important step towards introducing natural gas to
the Para state. The Barcarena LNG terminal will transform the fuel
supply in the region, and our clients will have an affordable
solution to reduce their environmental footprint. The large
industries established in the region and the environment will be
the most benefited from this initiative”.
Tor Olav Trøim, Chairman of Golar LNG commented:
“Our commitment is to deliver cleaner and cheaper fuel to our
clients. GdP can count on Hygo’s full support in order to introduce
natural gas and LNG in this great region in the first half of 2022.
The expected LNG demand for this terminal piles up day after
day”.
Hygo estimates the potential for replacing
approximately 1.8 million tons of LNG equivalents per annum of LPG,
diesel, fuel oil, and coal from the terminal. The LNG demand for
power generation is also significant. Hygo has secured 25-year PPAs
for a 605MW power station in the region, which adds 0.6 mtpa of LNG
demand to the Barcarena Terminal, starting in January 2025. This
power station will be configured with the ability to run with
a blend of up to 50% of Hydrogen. Hygo also expects to utilize the
Barcarena LNG terminal to provide an LNG supply solution to the new
regional power auction.
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 Hygo Energy Transition Limited 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 Hygo Energy Transition Limited
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
October 14, 2020
Enquiries:
Golar Management Limited: + 44 207 063 7900
Eduardo Maranhão
Stuart Buchanan
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