Ports and Terminals

Golar Power to invest R$1.8 billion to build LNG terminal at Suape

Mar, 17, 2020 Posted by datamarnews

Week 202013

On March 13, a letter of intent was signed between the State Government and Golar Power Brasil – one of the largest LNG logistics companies in the world – to build a liquefied natural gas terminal (LNG) at the Suape Port Industrial Complex. A private investment of R$1.8 billion will be made, and 300 direct and indirect jobs are expected to be generated.

Operations are scheduled to start in the second half of this year, with the project including infrastructure to supply natural gas to generate electricity, in addition to meeting the demands of industries, commerce, LNG gas stations and homes. For the latter, Companhia Pernambucana de Gás Natural (Copergás) will work in partnership with Golar to bring natural gas to regions of the state that are currently not served by traditional distribution networks.

The terminal is expected to help the economy of cities in the region that are not served by gas pipelines, since the supply of natural gas in these places will be carried out by road via ISO-Containers (small scale). Golar Power Brasil promotes the uptake of LNG in the country through a strategic plan that considers the Northeast as a priority region for small-scale distribution.

Suape is already the largest hub for liquid bulk and gases in the country and now, it will be one of the main LNG distribution hubs in the Northeast, with full integration of sea and land transport.

HOW THE SUAPE OPERATION WILL WORK

The Golar Power terminal will operate as follows: the LNG ship Golar Mazo, with a capacity of 135,000 cubic meters and 290 meters in length, will permanently dock at the Suape Port’s Multiple Use Wharf. This vessel will act as a supplier to isotanks (type of container in the shape of a cistern) mounted on trucks. These vehicles will distribute to cities within a radius of up to a thousand kilometers. Trucks are estimated to be able to handle around 800 m3 of LNG per day, equivalent to approximately 480,000 m3 of natural gas per day.

Distribution of LNG will also be made from Suape to other states in Brazil via cabotage. The Golar Group’s small cryogenic vessel will be supplied via transshipment and used to transport LNG to other ports in the region. The vessel is 123 meters long and has a storage capacity per operation of 7,500 m3 of LNG, equivalent to 4.5 million m3 of natural gas.

LNG TO INCREASE CARGO HANDLING AT SUAPE

With the new terminal, cargo handling at Suape is expected to increase by more than 500,000 tons per year. Considering Golar’s future plans to supply thermoelectric projects and natural gas distributors connected to the gas pipeline network, this volume has the potential to triple. The LNG used in the operations may be imported from Qatar, Nigeria, the Gulf of Mexico or Trinidad and Tobago. Within five to eight years, it could even be produced in Brazil and distributed along the entire Brazilian coast by cabotage.

“In addition to boosting the economy of Pernambuco, generating jobs and income for the population, the LNG terminal at Suape reinforces our goal to be a hub port in the Northeast. Currently, Suape is a leader in liquid bulk and gases in the country. In 2019, we reached the historical record in cargo handling, reaching 23.8 million tons, of which 74% were liquids and gases. For 2020 we are working hard to make other announcements of this size, confirming that Suape is on an upward curve for growth and investments”, commented the president of the Suape Complex, Leonardo Cerquinho.

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