Golar Power Authorized By Brazil’s Ministry of Mines and Energy to Import Up to 20 Million M³/D of LNG Through Bahia Regasification Terminal

Golar Power Will Import LNG in Bahia Despite Leasing Doubts

Golar Power was authorized by the Ministry of Mines and Energy to import up to 20 million m3/d of LNG through the regasification terminal in Bahia, despite ongoing uncertainty about whether the company’s sole offer to lease the facility is valid.

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Golar Power, a 50:50 joint venture between Norwegian Golar LNG and US private equity fund Stonepeak, was the only company to submit a bid to the state-owned Petrobras for leasing the terminal.

The company already imports LNG to Brazil through its regasification terminal in the neighboring state of Sergipe, where it also operates the 1.5 GW Porto de Sergipe power plant.

Golar Refutes Petrobras’ Accusations

Golar Power reiterated its interest in leasing and refuted Petrobras’ assessment of the integrity risk of the company after Golar Power’s CEO was implicated in the corruption investigation of Lava Jato in Brazil.

In a tender last month, Golar Power submitted a proposal to pay Petrobras R130 million (US $23.6 million) to lease the terminal between 2021 and 2023.

Golar’s Interest Remains

Golar Power claims that the events in question occurred in 2010, six years before the company’s formation. The firm appealed the decision, but Petrobras did not indicate how long it will take to address the appeal.

Golar Power accepted a request for leave from its CEO Eduardo Antonello, who was named in the 75th phase of Operation Lava Jato. The allegations stem from his previous involvement with the Norwegian contractor Seadrill, whose Brazilian subsidiary was served with a search warrant as part of an ongoing government investigation into corruption.

Government Suspends Investigations

The incident highlights the continuing reach of the Lava Jato investigation, more than six years after former Petrobras director Paulo Roberto Costa was arrested in the initial phases of the corruption probe in 2014.

Since then, the investigation has recovered more than R14 billion in misappropriated funds. President Jair Bolsonaro said this week that he suspended the investigations because there is no more corruption in the government, a statement refuted by prosecutors, who said the president’s remarks demonstrate his ignorance of the ongoing work by the task force and his lack of commitment to combating corruption.