Golar Power, a joint venture between Golar LNG and Stonepeak Infrastructure Partners, has reached COD on the 1.5-GW Porto de Sergipe I Power Project. The power station will include a dedicated LNG import and regasification terminal using the 170,000-cubic-meter newbuild FSRU Golar Nanook, which has the capacity to supply more than 21 mcm per day of natural gas.
Golar LNG owns 25% of the power station through its 50% investment in Golar Power. The project will be Brazil’s first integrated LNG-to-power project as well as Latin America’s largest and most efficient thermal power station.
Commercial operations are set to commence at the power station after Golar Power received its commercial operations certificate from ANEEL (Brazilian Electricity Regulatory Agency) on March 21. The project received 25-year 1.5-GW power purchase agreements at the government-promoted A-5 Power Auction in 2015. The power station will deliver electricity to 26 power distribution companies until December 2044.
The PPAs mean that the project has guaranteed annual capacity payments of around 1.6 billion reais. Annual revenues, minus forecasted operating costs, are estimated at 1.1 billion reais. Revenues less forecasted operating costs over the life of the project, without inflation adjustment, are expected to amount to 27.5 billion reais. Golar LNG’s 25% share is 6.9 billion reais (US$1.7 billion).
The Porto de Sergipe I Power Project will provide power to millions of people and help Brazil meet its growing requirement for base-load capacity. Using LNG will help the country transition to lower-carbon energy generation sources and diversify its supply of energy.