GEV to Develop Brazilian CNG Terminal
Sydney-listed Global Energy Ventures (GEV) has teamed up with Brazilian companies Porto Norte Fluminense (PNF) and GAIA to consider developing a compressed natural gas (CNG)-to-power project in the Rio de Janeiro state, it said on August 3.
The group have signed a joint development agreement on evaluating and promoting the project, which will be supplied with gas from offshore pre-salt fields in the Santos and Campos basins.
If they decide the scheme is technically and commercially viable, the partners will seek to bring on board other companies with power plant expertise. Some firms have already shown interest in participating, GEV said. The group is also seeking support from Brazilian energy and regulatory agencies.
The target for commercial operations at the power plant is 2025.
PNF is developing the North Fluminense port in Rio de Janeiro's Sao Francisco de Itabapoana municipality, where the potential power station and CNG import facilities will be built. It hopes to get additional environmental permits in early 2021 that will make the construction of a gas processing plant and gas-fired power units possible.
GEV said the port was an ideal location for CNG imports, due to its comparatively low traffic. It is situated around 460 km from a number of sources of gas supply.
"There are several major oil and gas field developments with a suitable export gas composition located within a half day sail from Porto Norte Fluminense," GEV's Brazil project manager Luke Velterop said. "While gas reinjection can be required for reservoir management, operators are having to consider reinjection of the entire gas stream, due to the lack of midstream infrastructure and gas market challenges."
"An integrated CNG to power project would solve both of these issues," he continued, adding that the cost of electricity from the proposed plant would be competitive against power produced from imported LNG.