Golar LNG (GLNG) shares were up pre-market Monday after the company’s joint venture Golar Power said it approved a final investment decision on the Porto de Sergipe Project in Brazil.
The final investment decision will enable project firm CELSE to seal a lump sum, turn-key EPC agreement with General Electric (GE) to build, maintain and operate a 1.5 gigawatt combined cycle power plant in Brazil.
Golar Power, which is a 50-50 joint venture between Golar LNG and Stonepeak Infrastructure Partners, also doubled its stake in the Sergipe Project to 50% from 25%. The final price for the additional shares will depend on the performance of the project and includes an option that would limit the price to $50 million if it is exercised, the company said.
The joint venture also sealed an agreement to charter the Golar Nanook new-build FRSU for a 25-year period.