US-based firm Sycar is working on a floating liquefied natural gas (LNG) project in Venezuela and plans to supply the fuel to Latin America and Europe.
In that regard, the firm signed a memorandum of understanding with Petroleos de Venezuela (PDVSA), the Venezuelan state-owned oil and natural gas company, for the development of the FLNG project, according to a statement by Sycar released on November 10.
The firm said in the statement that this agreement with PDVSA would allow it to secure a long-term gas supply agreement (GSA) for volumes of natural gas to be liquefied and exported as LNG to the regasification projects that Sycar is currently developing in Latin America as well as Europe.
Also, Sycar has presented an application for a license with the Office of Foreign Asset Control (OFAC), to engage in the liquefaction and export of LNG from Venezuela.
Venezuela currently has no LNG export terminals but there were previously plans by PDVSA and international partners to build liquefaction facilities in the country.
Also, the US government imposed sanctions on PDVSA in January 2019, prohibiting US persons from engaging in transactions with PDVSA or its subsidiaries.
Sycar said in the statement it is looking to install the floating LNG producer in the industrial and petrochemical complex, Complejo Petroquimico Jose Antonio Anzoategui (CJAA), located in Barcelona, Anzoategui state, Venezuela.
The existing infrastructure at the complex would allow a fast-track development, according to Sycar.
Preliminary studies indicate also favorable metocean and oceanographic conditions for the operation of the FLNG, it said.
Sycar said it would start the process of permitting the FLNG project with local Venezuelan authorities to obtain a marine concession and an environmental license to operate the unit.
“This milestone is good news for Sycar as it consolidates its plans to secure and strengthen the gas supply chain in its projects as well as reduce the exposure to gas price volatility in the international markets,” the firm said.
Sycar did not provide additional information regarding the project.
Earlier this year, the company delivered the first LNG ISO tank shipment to Ecuador as part of bigger plans which include building a small-scale import facility in the country.
Sycar delivers the fuel from the Costa Norte LNG terminal in Panama.
The Miami-based firm previously said it had teamed up with an unidentified trader for what it says is the first LNG import development in Ecuador.
Also, the small-scale Jambeli LNG project with a capacity of some 0.4 mtpa includes port facilities to accommodate an FSRU which would supply regasified LNG to the Ecuadorian power and industrial markets, it said.