Golar Power, a 50-50 joint venture between Golar LNG and Stonepeak Infrastructure Partners, has collaborated with Petrobras Distribuidora (BR Distribuidora) to develop liquefied natural gas (LNG) distribution businesses in Brazil.

The aim of the partnership is to introduce LNG as an alternative to the fuels which are now available for cargo and people transportation, industrial, thermoelectric generation, commercial and residential sectors of the country.

Both the companies think that LNG is an innovative and potentially disruptive solution for the transportation sector in the country.

They believe that LNG provides environmental benefits and important economic gains for customers, society.

Combining infrastructure and experience in the fuel distribution sector of BR Distribuidora with LNG industry experience of Golar Power is estimated to facilitate the rapid development and penetration of small-scale LNG solutions in Brazil.

Golar Power CEO Eduardo Antonello said: “We believe in LNG as the only viable fuel to replace diesel, LPG and HFO globally.

“The abundance of natural gas supply over the long term and the price parity in relation to diesel and LPG, make LNG a real alternative – cheaper, cleaner and more effective in transportation and industrial use.”

BR Distribuidora is planning to replace its current trucks with vehicles that use LNG

The partnership is expected to make use of BR Distribuidora’s network of gas stations and supply bases along with Golar Power’s LNG terminals and ships to provide LNG supply to the transportation and industrial sectors of the country, mainly in regions which are not supplied by gas pipelines.

Additionally, BR Distribuidora is planning to replace its existing hired fleet of about 5,000 trucks with vehicles which use LNG.

In October last year, Golar Power secured a 25-year power purchase agreement (PPA) for 605MW LNG to power project in Barcarena, Brazil.