Oil and Gas

Golar Brazil LNG venture to start building power plant in November

RIO DE JANEIRO, Sept 28 (Reuters) - GG Power, a joint venture between Britain’s Golar LNG Ltd and Brazil’s GenPower Participacoes SA, plans to start construction of its 1,500 megawatt natural-gas-fired power plant in November, in the Brazilian state of Sergipe, a local government official said.

Site preparation and grading is already underway and physical construction of the $850 million plant and its floating offshore oil terminal is set to move in little more than a month, said Jose de Oliveira Junior, economic affairs adviser to the Sergipe-state government.

The Port of Sergipe Thermoelectric Plant, slated to be one of the largest gas-fired power generation stations in Brazil, will be fueled by liquefied natural gas (LNG) supplied by Exxon Mobil Corp and delivered through a new floating natural gas storage and regasification facility to be built as part of the project.

Located near Aracaju, the state capital, the plant is scheduled to open by 2020 under contracts it won from the Brazilian government at auction in 2015.

The government hopes the plant will help supplement hydropower during dry seasons and the growing electricity demand of Brazil’s power grid, Oliveira Junior said.

Planners are also looking to large amounts of discovered but untapped gas off Sergipe’s coast to eventually expand gas-fired generation capacity at the same site, he added. (Reporting by Jeb Blount; Editing by Tom Brown)