A unit of Brazilian energy company Cosan has started the construction of a new LNG import facility in Brazil.
Cosan’s unit Compass Gas e Energia is the developer of the Sao Paulo regasification terminal project (TRSP).
Located in the Port of Santos, the project has a nominal approved regasification capacity of 14 million cbm/day and a 173,000 cbm storage capacity, Cosan said in a statement.
Cosan said the terminal would use a chartered floating storage and regasification unit (FSRU), but it did not reveal any additional information regarding the vessel.
Moreover, the estimated investment would reach about 700 million Brazilian reals ($135.3 million), the firm said, adding that the construction would last over 20 months.
Compass works in creating “more competitive gas and power alternatives to its clients.”
The company believes that implementing the TRSP would “serve as an important lever in developing the free natural gas market and will ultimately improve competition through a better offer of natural gas in the Brazilian territory,” it said.
Worth mentioning here, Brazil’s state-owned energy firm Petrobras recently said it had reached a daily regasification record as the country continues to boost LNG imports on high demand.
Brazil is turning to LNG to fuel its power plants due to a severe drought that has considerably affected hydroelectric power in the country.