Shearman & Sterling Advises Golar Power on the Development of the Porto de Sergipe LNG-to-Power Project
Shearman & Sterling is advising Golar Power in connection with the development of the Porto de Sergipe LNG-to-Power Project in Brazil.
Golar Power made a positive final investment decision in connection with the Porto de Sergipe LNG-to-Power Project on October 17, 2016. As a result, the project company (Celse) has entered into:
- a lump sum turn-key EPC agreement with General Electric to build, maintain and operate a 1.5 GW combined cycle power plant;
- an agreement to charter the (LNG FSRU) Golar Nanook for 25 years, a new-build floating storage and regasification unit expected to be delivered in November 2017; and
- a long-term LNG sale and purchase agreement with Ocean LNG (a joint venture between Qatar Petroleum and ExxonMobil).
Golar Power has also increased its participating interest in Celse from 25% to 50%.
The Shearman & Sterling team has worked with Golar Power in connection with all aspects of the Porto de Sergipe LNG-to-Power Project since April 2015.
Ocean LNG will supply 1.3 Mtpa of LNG to Celse, on a delivered ex-ship basis, with shipments scheduled to begin in 2020. Upon completion, the 1.5 GW combined cycle power plant will be the largest thermal power station in South America. It will supplement hydropower during dry seasons and help to meet growing regional demand for electricity.
Golar Power is a 50/50 joint venture between Golar LNG Limited and Stonepeak Infrastructure Partners to develop, own and operate integrated LNG-based transportation and downstream solutions including LNG carriers, FSRU and associated terminal and power generation infrastructure.