US-based contractor Excelerate Energy is to provide a liquefied natural gas floating storage and regasification unit for Petrobras, which will be deployed at Bahia in Brazil.
Excelerate said it had successfully concluded the negotiations of the tender process for the lease of the Bahia regasification terminal with Petrobras.
“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 customers,” said Excelerate.
The FSRU specialist in June was the sole contender for the contract — submitting a bid to lease the Bahia import facility for a 30-month period with a proposal worth 92.1 million reais (US$17.6 million). However, Petrobras disqualified that bid based on contractual terms.
Excelerate last month submitted a revised proposal albeit with the same price which, it seems, has now been accepted.
The contractor will deploy one of its existing FSRUs for the Bahia job.
“Petrobras’ decision to advance in the tender for leasing the Bahia Regasification Terminal to Excelerate is an important milestone in the process of promoting competition in the Brazilian natural gas sector,” said Excelerate chief executive Steven Kobos.
“We understand that increasing access to flexible LNG supply is critical to stabilising Brazil’s energy system, especially during adverse weather events such as the current severe drought.”
Excelerate has provided regasification services in Brazil for almost a decade, with a track record 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 achieving 1.06 billion cubic feet per day at the Guanabara Bay LNG Regasification Terminal.
“Petrobras has trusted Excelerate with critical services for years, and we expect 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,” added Kobos.
Petrobras last year cancelled its initial attempt to lease the Bahia LNG facility after all proposals were either disqualified or invalidated.
Upstream reported on 21 July that the Brazilian state-owned operator was offering the use of an LNG terminal with regasification capacity of 20 million cubic metres per day of natural gas, plus the associated 28-inch, 45-kilometre pipeline connecting it to two delivery points in the Brazilian natural gas distribution system.
Excelerate has developed and operated 13 FSRU-based LNG terminals worldwide.