Hygo forms alliance with Pará state distribution company
Published by Pippa Luck,
Tanks and Terminals,
An affiliate of Hygo Energy Transition Ltd (Hygo) has fulfilled a Memorandum of Understanding (MOU) with Companhia de Gás do Pará (GdP). The MOU is a result of Hygo’s continued efforts to reduce energy costs and support environmentally responsible and sustainable industrial growth in the Amazon region, and especially in the State of Pará, Brazil.
The MOU establishes that Hygo and GdP will explore the local market potential and that Hygo will supply natural gas and LNG to GdP once the negotiations and contracts are finalised. Hygo will utilise the Barcarena terminal to supply the volumes. Construction of the Barcarena terminal is expected to start shortly, with operations to commence in the first half of 2022.
Fabio Amorim, Commercial Director of GdP said: “The MOU is an important step towards introducing natural gas to the Para state. The Barcarena LNG terminal will transform the fuel supply in the region, and our clients will have an affordable solution to reduce their environmental footprint. The large industries established in the region and the environment will be the most benefited from this initiative”.
Tor Olav Trøim, Chairman of Golar LNG commented: “Our commitment is to deliver cleaner and cheaper fuel to our clients. GdP can count on Hygo’s full support in order to introduce natural gas and LNG in this great region in the first half of 2022. The expected LNG demand for this terminal piles up day after day”.
Hygo estimates the potential for replacing approximately 1.8 million tpy of LNG equivalents, including LPG, diesel, fuel oil, and coal from the terminal. The LNG demand for power generation is also significant. Hygo has secured 25-year power purchase agreements (PPAs) for a 605 MW power station in the region, which adds 0.6 million tpy of LNG demand to the Barcarena terminal, starting in January 2025. This power station will be configured with the ability to run with a blend of up to 50% of Hydrogen. Hygo also expects to utilise the Barcarena LNG terminal to provide an LNG supply solution to the new regional power auction.
Read the article online at: https://www.tanksterminals.com/terminals/19102020/hygo-forms-alliance-with-par-state-distribution-company/
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