Go­lar Power recog­nises the ben­e­fits LNG could have on the en­ergy sec­tor.

Go­lar LNG formed Go­lar Power to of­fer in­te­grated down­stream so­lu­tions and grow LNG-based op­por­tu­ni­ties glob­ally.

Norway-Asia Business Review - - Contents - CHEYENNE HOL­LIS

The joint ven­ture with Stone­peak In­fra­struc­ture Part­ners has cre­ated sev­eral in­no­va­tions to make this pos­si­ble by own­ing and op­er­at­ing float­ing stor­age and re­gasi­fi­ca­tion units (FSRUs) as well as the as­so­ci­ated ter­mi­nal and power gen­er­a­tion in­fra­struc­ture. Many coun­tries in Asia still rely on diesel or coal to gen­er­ate elec­tric­ity de­spite the high costs and pol­lu­tion these power sources bring. Al­ter­na­tively, nat­u­ral gas is the clean­est fos­sil fuel avail­able and is a safe, sus­tain­able al­ter­na­tive with an abun­dance of global re­serves.

Recog­nis­ing the ben­e­fits LNG could have on the en­ergy sec­tor, Go­lar Power con­tin­ues to de­velop op­por­tu­ni­ties in down­stream power projects. The firm is lev­er­ag­ing its ex­per­tise in float­ing stor­age and re­gasi­fi­ca­tion units (FSRUs) as well as im­port ter­mi­nal and pipe­line in­fra­struc­ture to cre­ate in­no­va­tive LNG en­ergy so­lu­tions.

“We en­able un­der­served coun­tries and re­gions to ac­cess and to utilise the su­pe­rior ben­e­fits of LNG within the en­ergy ma­trix. It is worth not­ing that new power projects are be­ing de­signed to cater specif­i­cally for the LNG so­lu­tions Go­lar Power pro­poses, stand­ing as a con­fir­ma­tion of our pro­cesses ef­fec­tive­ness and re­li­a­bil­ity over the project’s life­time,” Mr Robert Carter, Go­lar Power’s Chief Com­mer­cial Of­fi­cer, ex­plains.

He notes that LNG-sup­plied power can have the great­est im­pact in coun­tries de­pend­ing ex­ten­sively on im­ported coal and pe­tro­leum fu­els. Lack­ing al­ter­na­tives, sev­eral coun­tries in South­east Asia re­ly­ing on diesel power gen­er­a­tion fall into that group. At the mo­ment, ris­ing fuel prices pre­vent it from be­ing a cost ef­fec­tive so­lu­tion

“New poli­cies are driv­ing prac­ti­cal changes in the power sec­tor, steer­ing coun­tries away from those fu­els to find sub­sti­tutes. As re­new­able en­er­gies lack scal­able stor­age tech­nol­ogy to­day, and be­cause some coun­tries are re­luc­tant to adopt nu­clear en­ergy due to safety con­sid­er­a­tions, nat­u­ral gas is be­ing con­sid­ered as an al­ter­na­tive that bridges those gaps,” Mr Carter says. “LNG’s im­pact is there­fore linked to the scale of the switch­ing op­por­tu­nity, as can be seen in China that is now the sec­ond largest LNG im­porter.”

And while the en­vi­ron­men­tal ben­e­fits of us­ing LNG in­stead of diesel are well known and sci­en­tif­i­cally proven, the cost ben­e­fits and re­li­a­bil­ity of LNG power gen­er­a­tion can be sig­nif­i­cant and isn’t widely re­alised.

“From a cost per­spec­tive, re­gasi­fied LNG has proven its re­li­a­bil­ity as a fuel for power gen­er­a­tion, pro­vid­ing flex­i­bil­ity, scal­a­bil­ity and en­vi­ron­men­tal per­mit­ting over diesel. In some global mar­kets, we see the cost-sav­ing po­ten­tial of LNG ap­proach­ing 50 per­cent over diesel,” Mr Carter states. “Our in­fra­struc­ture is de­signed to op­er­ate with­out in­ter­rup­tion in di­verse weather con­di­tions. With strict en­vi­ron­men­tal poli­cies pro­gres­sively lim­it­ing the us­age of diesel in the power and trans­port sec­tor, LNG is grad­u­ally en­ter­ing new seg­ments and car­ry­ing those ben­e­fits to the mar­ket.”

To that end, Go­lar Power is

con­stantly look­ing for in­no­va­tive ways to in­tro­duce LNG so­lu­tions while work­ing with new part­ners to de­velop the gasto-power pro­cesses. The end goal is to cre­ate the best pos­si­ble LNG so­lu­tion for each area.

“Projects are very dif­fer­ent from one coun­try to an­other, or even from one lo­ca­tion to an­other within the same state. In some projects, the scope of work re­quires pro­vid­ing the full range from gas sup­ply, float­ing re­gasi­fi­ca­tion, moor­ing in­fra­struc­ture to pipe­line for de­liv­ery at the power plant, whereas oth­ers re­quire a more lim­ited scope of work, which does not come with less com­plex­ity,” Mr Carter de­tails.

Fully ca­pa­ble The 1,550 MW Porto de Sergipe gas-to-power project in Brazil has reached fi­nan­cial clos­ing ear­lier this year and is now more than 70 per­cent com­plete, ac­cord­ing to Mr Carter. Ev­ery­thing is on track for the fa­cil­ity to com­mence op­er­a­tions next year. The project will show­case Go­lar Power’s full ca­pa­bil­i­ties once it is up-and-run­ning.

“The con­struc­tion site is sup­ported by more than 2,000 work­ers oc­cu­pied with the in­stal­la­tion of dif­fer­ent equip­ment com­po­nents such as gas tur­bines, steam tur­bine, gen­er­a­tors, heat re­cov­ery steam gen­er­a­tors, elec­tri­cal trans­form­ers, switch­yard, sub­sta­tion and trans­mis­sion lines, pipe­line and moor­ing in­fra­struc­ture for the FSRU” Mr Carter says. “Go­lar will also be de­liv­er­ing the Go­lar Nanook, a new FSRU specif­i­cally built for the project, and it is ex­pected to be de­liv­ered to site in the first half of 2019.”

The com­pany cre­ated the project by work­ing jointly with in­ter­na­tional and lo­cal part­ners as it looks to pro­vide ad­di­tional power to the grid and help meet this re­gion’s grow­ing elec­tric­ity de­mand.

“The project is of strate­gic im­por­tance to Go­lar Power and Brazil, as it rep­re­sents a crit­i­cal en­try point for LNG into the coun­try and acts as a sys­tem backup for the in­ter­mit­tent hy­dropower gen­er­a­tion ca­pac­ity in the area,” Mr Carter notes. “Go­lar Power sees a num­ber of at­trac­tive op­por­tu­ni­ties to in­crease the de­mand for en­vi­ron­men­tally friendly LNG so­lu­tions and to sub­sti­tute more ex­pen­sive fuel based con­sump­tion. Us­ing spare bulk ca­pac­ity from our ves­sel, we are tar­get­ing to fur­ther de­velop the down­stream in­dus­trial and com­mer­cial mar­kets with LNG sup­ply.”

Go­lar Power is cur­rently ex­plor­ing op­por­tu­ni­ties on ev­ery con­ti­nent and the firm holds a long-stand­ing in­ter­est in South­east Asia. That’s be­cause it views the re­gion as a lead­ing mar­ket for de­vel­op­ing LNG-pow­ered so­lu­tions.

“Gu­lar Power owns and op­er­ates two LNG car­ri­ers the Go­lar Cel­sius and Go­lar Pen­guin ded­i­cated to sup­ply global mar­kets with liq­ue­fied nat­u­ral gas. We are also look­ing for new de­vel­op­ment op­por­tu­ni­ties through­out South­east Asia by pro­vid­ing re­li­able and flex­i­ble so­lu­tions to meet the in­creas­ing de­mand and have the ca­pac­ity to con­vert our LNG Car­ri­ers into FSRUs un­der short de­liv­ery time” Mr Carter re­ports.

Float­ing so­lu­tions Go­lar Power is us­ing float­ing so­lu­tions to sup­port its goals, in­clud­ing LNG-to-en­ergy ini­tia­tives. The com­pany’s FSRUs al­low for ship­board LNG re­gasi­fi­ca­tion, which can then be dis­patched to on­shore fa­cil­i­ties. This re­quires less up­front in­vest­ment than tra­di­tional on­shore re­gasi­fi­ca­tion plants while pro­vid­ing coun­tries with­out LNG in­fra­struc­ture flex­i­ble so­lu­tions and faster ac­cess to the mar­ket­place.

“The float­ing units can be moored away from shore pro­vid­ing a long term al­ter­na­tive to the ma­jor con­struc­tion work re­quired by on­shore re­gasi­fi­ca­tion plants as well as the re­lated en­vi­ron­men­tal land per­mit­ting is­sues,” Mr Carter says. “Go­lar achieved the world’s first FSRU con­ver­sion, the Go­lar Spirit, which went into op­er­a­tion in 2008.”

The com­pany is cur­rently look­ing to take ad­van­tage of its avail­able ship­ping re­sources to se­cure ad­di­tional FSRUs to long-term com­mit­ments. Mr Carter adds the com­pany is al­ways search­ing for ways to max­imise the us­age of its re­gasi­fi­ca­tion float­ing as­sets around the world.

“We con­sider ev­ery project with the same per­spec­tive of pre­sent­ing the op­por­tu­nity to en­hance LNG us­age and pro­vide prac­ti­cal al­ter­na­tives to more ex­pen­sive or pol­lut­ing fu­els,” Mr Carter says. “Go­lar Power has ac­quired a unique ex­per­tise of form­ing strate­gic al­liances with cred­i­ble in­ter­na­tional play­ers and be­ing able to suc­cess­fully lead teams on dif­fer­ent projects across the globe.”

This ex­pe­ri­ence is some­thing Go­lar Power can lever­age in Asia, a re­gion where it can con­tinue to grow. With ad­di­tional gas sup­ply ex­pected from the US and new ex­port ter­mi­nals com­ing on­line, the com­pany ex­pects the price of LNG to re­main com­pet­i­tive in the com­ing years en­sur­ing LNG-to-power gen­er­a­tion is an at­trac­tive al­ter­na­tive.

“We are deeply in­volved in di­verse op­por­tu­ni­ties in Asia, pro­vid­ing end users with re­li­able, safe and en­vi­ron­men­tally re­spon­si­ble means of power gen­er­a­tion. Go­lar Power is com­mit­ted to the de­vel­op­ment of down­stream ac­tiv­i­ties and to open­ing up new mar­kets for LNG and FSRUs,” Mr Carter con­cludes.



Above left: The Go­lar Nanook, the FSRU built for the Sergipe gas-to-power project. Above: Power equip­ment un­der in­stal­la­tion at Go­lar Power’s Sergipe site in Brazil.

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