Brazilian energy firm Eneva said it would supply liquefied natural gas (LNG) to compatriot pulp and paper maker Suzano under a new deal revealed this week.
Eneva said in a statement on May 25 this is Brazil’s first supply contract under which a producer would directly deliver LNG to an industrial customer. The contract is for a period of 10 years.
According to the statement, Eneva plans to invest about 530 million reais ($111 million) to install a small liquefaction unit at its Parnaiba complex in the town of Santo Antonio dos Lopes, in Maranhao.
The Parnaiba complex is one of the largest thermal parks for natural gas energy production in Brazil. It uses gas produced in the fields situated close to the thermal park, according to Eneva.
Eneva said the new unit would have a capacity of about 300,000 cbm per day. Most of these volumes would go to Suzano but Eneva is also working with other customers to replicate this model.
Trucks would deliver LNG to a regasification unit at Suzano’s giant pulp mill in Imperatriz, Maranhao, as the firm looks to further slash emissions.
Also, Eneva expects first small-scale LNG delivery to Suzano in the first half of 2024.
Besides this project, Eneva is working on a new LNG import terminal in Brazil in order to meet the country’s growing demand for the fuel.
Last year, the firm joined forces with compatriot investment firm Servtec to develop the LNG terminal at the Port of Itaqui or in its surroundings, in Sao Luis, Maranhao.