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    Brazil to Lease Out LNG Terminal


Petrobras has committed to opening up the Brazilian gas market to greater competition.

by: Joseph Murphy

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Brazil to Lease Out LNG Terminal

Brazil’s Petrobras has begun pre-qualifying bidders for the long-term lease of its 7.3bn m3/yr Bahia LNG regasification terminal, it said in a statement on December 9.

The national oil company said the move was in line with an agreement it reached with Brazilian regulator Cade in July, under which it pledged to open up the country’s gas market to greater competition.

Leasing out the terminal fits with Petrobras’ strategy of “improving capital allocation and building a favourable environment for new investors to enter the natural gas sector,” it said.

Petrobras’ lease offer comes at a time when the Brazilian LNG market is contracting because of a rise in domestic gas production. The company operates two more regasification terminals at the port of Pecem and in the state of Rio de Janeiro. But the latter has been idle since September last year.

Separately, Norwegian LNG firms Hoegh LNG, Golar LNG and Stolt-Nielsen recently said they would work together to develop the Brazilian market for small-scale LNG – potentially giving demand a boost in the longer term.