Golar Power said its LNG project has the potential to displace large volumes of diesel, coal, LPG and heavy fuel oil consumption in the Amazon region.
The deal is Golar Power's first industrial supply contract in Brazil, where it has pioneered LNG-to-power projects.
Golar Power will supply the company from its Para LNG regasification terminal that is scheduled for start-up in the first half of 2022.
The LNG terminal project is anchored on the 605MW Centrais Eletricas Barcarena (Celba) thermoelectric project, which was awarded 25-year power purchase agreements (PPAs) with nine power distributors in an October 2019 auction.
Celba's PPAs begin in January 2025 and the plant will use 3mn m3/d of LNG when operating at full capacity.
Hydro Alunorte has already received permission from Brazil's mines and energy ministry to import up to 2mn m3/d of LNG.
Norsk Hydro recently committed to reduce its CO2 emissions by 30pc by 2030. Its Alunorte smelter currently uses fuel oil and diesel to power its electricity-intensive operations.
Other potential buyers of gas from Golar's Para project include aluminum producers Alubar and Albras, as well as fertilizer producer Yara Fertilizantes.
Golar is still awaiting environmental approval to begin construction of the Para terminal and power plant.
Golar Power is a 50:50 joint venture between Golar LNG and US private equity fund Stonepeak. It currently operates Brazil's only independent LNG regasification terminal in Sergipe state. The company also has LNG projects in Pernambuco, Bahia and Santa Catarina states.
