Texas-based floating LNG player Excelerate Energy said it would start importing liquefied natural gas via Brazil’s Bahia terminal following a tender process with Petrobras.
Excelerate said in a statement on Thursday it had successfully concluded with Brazil’s state-owned energy firm Petrobras the negotiation stage of the tender process for the lease of Bahia facility.
“Once the financial and legal qualification and certification stages have been concluded and all necessary regulatory approvals have been obtained, Excelerate will start importing LNG and selling regasified natural gas to its Brazilian customer,” the firm said.
Moreover, Excelerate said it would deploy one of its existing floating storage and regasification units (FSRUs) for service at the Bahia terminal.
To remind, Petrobras has earlier this year launched another bid notice to lease out its Bahia LNG terminal after the previous bidding round ended with no valid proposals. Excelerate was the only bidder in this tender but Petrobras disqualified this bid and the US firm submitted a new bid in July.
The terminal’s capacity allows for regasification of up to 700 MMcf/d and includes a 45km pipeline with connections to two delivery points in the city of Salvador.
Furthermore, the lease includes power generation and equipment at an onshore gas-powered power plant, located at the Madre de Deus Waterway Terminal, Petrobras previously said.
“Promoting competition” in Brazilian natural gas sector
“Petrobras’ decision to advance in the tender for leasing the Bahia regasification rerminal to Excelerate is an important milestone in the process of promoting competition in the Brazilian natural gas sector,” Excelerate’s CEO Steven Kobos, said.
“We understand that increasing access to flexible LNG supply is critical to stabilizing Brazil’s energy system, especially during adverse weather events such as the current severe drought,” he said.
Cobos said Petrobras has trusted Excelerate with critical services for years, and the firm expects to continue to support Petrobras’ efforts to increase LNG access for the Brazilian energy market.
“We are proactively engaging with customers to assess their natural gas requirements and coordinating with Petrobras to ensure a timely and seamless transition of service,” he said.
Excelerate has provided regasification services in Brazil since 2012, operating at Petrobras’ LNG terminals in Bahia, Guanabara Bay, and Pecem.
In September 2020, Excelerate’s FSRU Experience broke an industry record for send-out capacity by reaching 1.06 billion cubic feet at the Guanabara Bay LNG regasification terminal.
