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AfrElec GAS-TO -POWER AfrElec
Golar LNG reveals outlook for
projects in Africa, South America
AFRICA BERMUDA-REGISTERED Golar LNG has terminal near the port of Sergipe. The FSRU is
issued an update on its activities related to pro- taking delivery of LNG and then regasifying it
jects in Africa and South America. before piping it onshore to Usina Termoelétrica
In a report on its performance in the first (UTE) Porto de Sergipe.
quarter of 2020, Golar LNG said it was work- UTE is a gas-fired thermal power plant (TPP)
ing to hammer out an agreement on revising owned by Brazil’s Centrais Elétricas de Sergipe
the schedule and budget for the conversion of (CELSE). It was commissioned in February of
the Gimi floating LNG (FLNG) vessel. “We are this year and has a generating capacity of 1,516
in advanced and positive discussions with our MW.
main building contractor, Keppel Shipyard Ltd, “We expect Sergipe [CELSE] to take advan-
and with engineering topsides subcontractor tage of merchant power opportunities where
Black and Veatch, on a revised cost and time the marginal cost of power exceeds the LNG
schedule for the FLNG Gimi conversion,” it purchase price (currently below $2 per mmBtu
stated. delivered ex-ship in Brazil),” Golar LNG said
in its statement. “We also expect Golar Power
Senegal/Mauritania to continue to progressively convert the small-
BP and its partners had previously struck a deal scale letters of intent [LoIs] they have into bind-
with Golar LNG’s subsidiary Gimi MS Corp. on ing sales agreements over the course of this year
the use of the Gimi to develop Tortue/Ahmeyim, and continue to sign new ones.”
an offshore block that straddles the border The company further stated that it hoped to
between Senegal and Mauritania. In April, strike similar deals for the delivery of LNG to
though, they declared force majeure on the pro- additional Brazilian facilities in the near future. It
ject, saying that the coronavirus (COVID-19) explained that it was working with local partners
pandemic had forced them to push their work in Latin America to support the development of
schedule back by 12 months. gas-fired TPPs with a total generating capacity of
Since then, Golar LNG has been in talks with 10.6 GW. All of these projects “have downstream
the contractors it hired for the conversion. The monetisation routes through a combination of
company indicated in its interim report that it power generation, gas consumption (by com-
had put forward proposals for a revised time and mercial and industrial users) and small-scale
cost schedule but did not divulge any details. “If LNG distribution via cabotage and ISO contain-
implemented, this would reduce Golar’s imme- ers to end-users,” it said.
diate liquidity contribution to the FLNG Gimi It also noted that one of these projects was
between the second quarter of 2020 and the orig- nearly ready to launch. “The Barcarena terminal
inal second-quarter 2022 delivery date,” it said. is expected to reach a final investment decision
“The consequences of any delay to the returns (FID) later this year or early next year, with the
available from the project will be dependent on associated 605-MW power station currently
the ultimate duration and cause of the delay anticipating FID in mid-2021,” it said. “Over
claimed by BP and the final terms of the revised the next four months, we expect to make fur-
conversion building agreements,” it added. ther progress on reaching agreement with key
industrial customers for the supply of gas from
Brazil the Barcarena-based FSRU that is expected to
Golar LNG went on to say that it expected its commence operations in 2022.”
Brazilian projects to make progress in the near Golar LNG also said it hoped to finalise plans
future. for securing a floating storage unit (FSU) near
The company’s Golar Power subsidiary is the port of Suape later this year. Additionally,
involved in Brazil within the framework of an it reported that it was in discussions with BR
agreement to let one of its vessels, a floating Distribuidora on plans for distributing LNG
storage and regasification unit (FSRU) known through the Brazilian company’s network of
as the Golar Nanook, serve as an LNG import 7,600 filling stations.
P6 www. NEWSBASE .com Week 22 04•June•2020
