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Additional LNG will be imported via the Baia da Guanabara terminal (Photo: Excelerate Energy)

Petrobras mulls ramping up LNG

imports amid pipeline maintenance

BRAZIL’S Petrobras may increase LNG imports of the country’s power generation mix. Accord-
by 50% to compensate for an expected drop ing to Bloomberg, Brazil has already imported
in domestic natural gas flows when the Rota 34 US LNG cargoes over the six months up to
1 pipeline is shut down for maintenance in June – a record number – in an effort to cover
August, it emerged last week. Work on the off- the power supply gap. The news service noted in
shore pipeline is set to begin on August 15, and early June that Brazilian imports were approach-
the resulting reduction in gas flows from the off- ing levels typically seen only from buyers in Asia
shore Mexilhao platform has the potential to cut and Europe, eclipsing US shipments of LNG to
gas-fired power capacity by around 3 GW. Chile and Mexico.
Energy regulator ANP’s director Rodolfo Petrobras was reported at the time to be tap-
Saboia said in the Brazilian lower house on June ping the spot market for a further four LNG car-
16 that his agency had approved raising LNG goes. Now, as maintenance on Rota 1 looms, the
imports to 30mn cubic metres per day from 20 number appears set to rise further still.
mcm per day. In the longer term, Brazilian LNG imports
Additional LNG would be processed in the could also rise owing to taxes on new steps in gas
Baia da Guanabara terminal in Rio de Janeiro. production that could discourage investment in
Additionally, Pecem’s floating regasification increased output from offshore pre-salt regions.
terminal would be relocated from Pernambuco The 9.25% federal Pis/Cofins tax applies to inter-
State to Bahia State to help increase LNG pro- mediate activities in the upstream, including
cessing capacity by 14 mcm per day. gas flow from offshore basins, processing and
This comes as Brazil struggles with a drought storage. Last week, Argus Media cited upstream
that is also resulting in higher demand for LNG, operators as saying that this favoured imported
given that hydropower accounts for around 70% LNG over their production. ™

Petrobras rejects only bid for Bahia LNG

BRAZIL’S national oil company (NOC) Petro- same day that it opened all the commercial
bras revealed earlier this week that it had dis- proposals received from the firms participat-
qualified US-based Excelerate Energy from ing in the tender. The review revealed that the
proceeding with its bid for the right to lease an US-based firm’s offer for Bahia LNG was condi-
underutilised LNG import terminal in Bahia tional upon the adoption of new terms govern-
State. ing the termination of the project, it said.
In a statement, Petrobras explained that it The inclusion of this condition served to
had reviewed Excelerate’s offer on June 14, the derail Excelerate’s proposal, the statement said.

P10 www. NEWSBASE .com Week 25 24•June•2021