Page 11 - LatAmOil Week 07 2023

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The terminal was built to import LNG for regasification and delivery to CELSE (Photo: IFC)

As a result of the council’s decision, the termi- he said, according to Argus Media.
nal’s operator – Energos Infrastructure, a joint TAG has said it intends to build a 25-km
venture platform established by US-based New pipeline to link the terminal to its own network,
Fortress Energy (NFE) and Apollo – will only which extends for 4,500 km, crossing 10 states
have to pay 6.2% of the usual ICMS tax on the and serving 90 delivery points. The conduit is
pipeline project rather than the full rate. ICMS due to be completed in 2024 and will be capable
is similar to a value-added tax (VAT), Argus of handling 14mn cubic metres per day, equiva-
Media noted. lent to two thirds of the terminal’s capacity of 21
State government officials have said they mcm per day.
hope this discount will reduce gas transporta- The Sergipe terminal is already being used
tion costs for the LNG terminal’s future cus- to import LNG for regasification and delivery
tomers. Marcelo Menezes, executive secretary at to the Porto do Sergipe thermal power plant
Sergipe state’s industrial and economic develop- (TPP), a 1,593-MW facility in nearby Barra de
ment department, went further, saying that the Coqueiros that consumes 6 mcm per day of gas
tax break would make Sergipe more competitive when operating at full capacity. The terminal
than other LNG import terminals along the Bra- is based on the Golar Nanook, a floating stor-
zilian coast. Bringing gas transportation costs age and regasification unit (FSRU) chartered
down will allow the Sergipe terminal to attract to Centrais Elétricas de Sergipe (CELSE), the
“a significant portion of Brazil’s LNG imports,” owner of the TPP. ™

Union urges Petrobras to change FPSO

contract practices to boost local content

THE Federation of Petroleum Workers (FUP), were inadequate.
a trade union representing Brazilian oil and gas Brazilian law currently requires that Petro-
workers, has criticised the national oil company bras must tender contracts for at least 25% of
(NOC) Petrobras for its practices in ordering total content to local companies, but in the past
floating production, storage and off-loading the minimum level has been as high as 40%, he
(FPSO) vessels, saying that changes are needed noted.
to boost local content. Bacelar also indicated, though, that his dis-
In a letter sent to Petrobras’ CEO Jean Paul satisfaction extended beyond the reductions in
Prates and Brazilian President Luiz Inacio Lula the local content requirement. In recent years,
da Silva, FUP’s general coordinator Deyvid he remarked, Petrobras has had difficulty meet-
Bacelar said that the rules governing minimum ing local content requirements even at the rela-
levels of local content in such capital projects tively low level of 25%.

Week 07 15•February•2023 www. NEWSBASE .com P11