Golar Power said it has taken a final investment decision on the Porto de Sergipe 1,516 MW power station project near Aracaju, Brazil.
The decision enables CELSE, the project company, to enter into a lump sum turn-key EPC agreement with General Electric to build, maintain and operate the combined cycle power plant, Golar said in a statement on Monday.
Golar Power is a joint venture created in June by Golar LNG and Stonepeak Infrastructure Partners to offer integrated LNG based downstream solutions, through the ownership and operation of floating storage and regasification units (FSRU’s) and associated terminal and power generation infrastructure.
The Sergipe power project, the largest thermal power station in South America, according to Golar, will supplement hydropower during dry seasons and help meet growing demand for electricity in the region.
The project cost is estimated at US$1.3 billion and is scheduled to start delivering power to off-takers for 25 years starting in 2020.
In connection to the power project, Golar Power chartered Golar Nanook, the FSRU newbuild scheduled for delivery in November 2017, for a period of 25 years. With the charter agreement, Golar Power has also increased its ownership in the Sergipe project from 25 percent to 50 percent.
LNG World News Staff