US-based New Fortress Energy has entered into a deal with Brazilian firm Bolognesi Energia to take control of the latter’s planned LNG terminal and thermal power plant project in the port of Rio Grande in southern Brazil.
The project said to be worth about 3 billion reais ($939.5m) includes a greenfield LNG import terminal consisting of a floating storage and regasification unit (FSRU) connected to a 1.3GW combined cycle power plant to be built on the site in the port of Rio Grande.
The project was awarded a long-term power purchase agreement in 2014 and is currently expected to be in operation in January 2021.
Once in service, the power plant will deliver “competitively priced electricity into the Brazilian market, and will provide further grid stability due to its strategic location in the extreme south of the country,” New Fortress said in a statement.
The Rio Grande LNG import terminal will also serve the domestic and regional natural gas markets.
The deal between the two companies is subject to regulatory approvals.
“This project and the importation of LNG will have a significant impact on local development and economic growth, as it provides another environmentally-friendly fuel source for Brazil’s energy portfolio,” said Brannen McElmurray, Managing Director for New Fortress.
“We are working hard alongside Bolognesi and our local partners to obtain the pending approvals,” added McElmurray.
LNG World News Staff