Golar Power advances with development of the Porto de Sergipe LNG-to-Power Project

Golar Power has announced significant advances in the development of the Porto de Sergipe LNG-to-Power Project, reaching a final investment decision.

As a result, the project company, Centrais Elétricas de Sergipe S.A. (Celse) has entered into:

• a lump sum turn-key EPC agreement with General Electric to build, maintain and operate a 1.5 GW combined cycle power plant;
• an agreement to charter the (LNG FSRU) Golar Nanook for 25 years, a new-build floating storage and regasification unit expected to be delivered in November 2017; 
• a long-term LNG sale and purchase agreement with Ocean LNG (a joint venture between Qatar Petroleum and ExxonMobil).

Located near Aracaju, the state capital of Sergipe, the 1,516 MW power station will be the largest thermal power station in South America. The project will supplement hydropower during dry seasons and help to meet growing demand for electricity in the region. The project budged is estimated at BRL4.3 billion (US$1.3 billion).

Ocean LNG will supply 1.3 Mtpa of LNG to Celse, on a delivered ex-ship basis, with shipments scheduled to begin in 2020. Upon completion, the combined cycle power plant will be the largest thermal power station in South America. 

Golar Power has also increased its participating interest in Celse from 25% to 50%. 

Golar Power is a 50/50 joint venture between Golar LNG Limited and Stonepeak Infrastructure Partners to develop, own and operate integrated LNG-based transportation and downstream solutions including LNG carriers, FSRU and associated terminal and power generation infrastructure.

Shearman & Sterling has acted as legal advisor to Golar Power.