US liquefied natural gas floating storage and regasification unit (FSRU) specialist Excelerate Energy is to supply one of its vessels to Brazil’s state-owned energy giant Petrobras.

Excelerate on Tuesday confirmed it had signed a 10-year contract to charter the FSRU Sequoia to Petrobras.

Under the time charter party and operation and services agreement, which will commence on 1 January 2024, Excelerate will continue to deploy the Sequoia to provide regasification services in Brazil, primarily at the Bahia Regasification Terminal (TR-BA) in Salvador, Bahia.

“Brazil is an excellent market. This agreement is an important step in furthering Excelerate’s long-term sustainable growth plan in South America,” said Steven Kobos, Excelerate chief executive.

“Deploying the Sequoia for 10 more years will position Excelerate well to support Brazil’s efforts to strengthen its energy security. We have been a reliable partner to Petrobras for more than a decade, and we are committed to maintaining that partnership and supporting the energy transition for all Brazilians.”

Since 2012, Excelerate has provided regasification services in Brazil at Petrobras’ LNG import terminals. In addition to the Sequoia, Excelerate’s FSRU Experience is currently providing regasification services in Brazil. Maintaining a continued presence in the Brazilian market is a fundamental part of Excelerate’s strategic position as a reliable backstop to the country's energy system for which intermittent renewable energy contributes approximately 85%, the contractor noted.

Excelerate added that its deal with Petrobras highlights its commitment to using its flexible FSRU fleet to enhance energy security and reliability for its customers around the world. The deal also expands the company’s core regasification business, which allows for increased visibility to predictable near-term and long-term earnings and cash flows, said Excelerate.

The financial terms of Petrobras’ 10-year contract were not divulged.

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