Page 16 - LatAmOil Week 22

LatAmOil BRAZIL LatAmOil

In its statement, Petrobras said it would inform processing plants.
potential stakeholders about its gas processing Brazilian authorities announced sweeping
units, the new business model and contracting plans last year to loosen Petrobras’ monopoly
procedures. It also reported that processing over the gas market in order to bolster compe-
capacity would be made available in two stages, tition. The policy is in line with the goals of Jair
the first of which is already underway. Bolsonaro, the country’s right-wing president,
The first stage, the company said, involves who took office in January 2019.
offering processing capacity to agents that hold Bolsonaro is keen to introduce free market
the rights to gas from fields currently in produc- measures across the economy. His national
tion. Confining the offers to such agents will energy policy council, known local as CNPE,
help guarantee the continuity of the country’s approved the gas reform guidelines last year
gas output, it explained. after the Brazilian Congress failed to pass a new
In the second stage, it stated, processing gas law.
capacity will be offered on an annual basis to all The liberalisation of the gas sector is likely
other interested agents. to take years to implement. It will include the
Petrobras currently accounts for around 80% unbundling of gas supply from transport and
of Brazilian gas production. It also controls and distribution, in an effort to encourage more
operates almost all offshore pipelines and all upstream investment. ™

Golar LNG reveals plans for Brazil

BERMUDA-REGISTERED Golar LNG has gas consumption (by commercial and indus-
issued an update on its activities related to pro- trial users) and small-scale LNG distribution
jects in South America. via cabotage and ISO containers to end-users,”
In a report on its performance in the first it said.
quarter of 2020, Golar LNG said it expected its It also noted that one of these projects was
Brazilian projects to make progress in the near nearly ready to launch. “The Barcarena terminal
future. is expected to reach a final investment decision
The company’s Golar Power subsidiary is (FID) later this year or early next year, with the
involved in Brazil within the framework of an associated 605-MW power station currently
agreement to let one of its vessels, a floating anticipating FID in mid-2021,” it said. “Over
storage and regasification unit (FSRU) known the next four months, we expect to make fur-
as the Golar Nanook, serve as an LNG import ther progress on reaching agreement with key
terminal near the port of Sergipe. The FSRU is industrial customers for the supply of gas from
taking delivery of LNG and then regasifying it the Barcarena-based FSRU that is expected to
before piping it onshore to Usina Termoelétrica commence operations in 2022.”
(UTE) Porto de Sergipe. Golar LNG also said it hoped to finalise plans
UTE is a gas-fired thermal power plant for securing a floating storage unit (FSU) near
(TPP) owned by Brazil’s Centrais Elétricas de the port of Suape later this year. Additionally,
Sergipe (CELSE). It was commissioned in Feb- it reported that it was in discussions with BR
ruary of this year and has a generating capacity Distribuidora on plans for distributing LNG
of 1,516 MW. through the Brazilian company’s network of
“We expect Sergipe [CELSE] to take advan- 7,600 filling stations.. ™
tage of merchant power opportunities where
the marginal cost of power exceeds the LNG
purchase price (currently below $2 per mmBtu
delivered ex-ship in Brazil),” Golar LNG said
in its statement. “We also expect Golar Power
to continue to progressively convert the small-
scale letters of intent [LoIs] they have into bind-
ing sales agreements over the course of this year
and continue to sign new ones.”
The company further stated that it hoped
to strike similar deals for the delivery of LNG
to additional Brazilian facilities in the near
future. It explained that it was working with
local partners in Latin America to support the
development of gas-fired TPPs with a total gen-
erating capacity of 10.6 GW. All of these pro-
jects “have downstream monetisation routes
through a combination of power generation, The Golar Nanook FSRU pipes gas to the power plant in Sergipe (Photo: GE Power)

P16 www. NEWSBASE .com Week 22 04•June•2020