Norway’s BW LNG has emerged as the lowest bidder in a tender to supply a floating storage and regasification unit for Prumo Logistica, a Brazilian port logistics company controlled by US-based energy and infrastructure fund EIG Global Energy.

Prumo is seeking an FSRU capable of powering two thermo-electric power stations with a combined ability to produce 3 gigawatts, to be located at the Acu port complex in the state of Rio de Janeiro.

The FSRU specificiations point to a minimum storage capacity of 150,000 cubic metres and enough throughput capacity to dispatch at least 14 million cubic metres of gas per day.

BW LNG currently operates FSRUs in Egypt and Pakistan and is now looking to make a debut in Brazil.

The tender attracted interest from numerous potential bidders, but Norway's BW LNG showed more appetite than its competitors, bidding a dayrate of close to $92,0000, according to sources involved in the contest.

The BW LNG bid was aggressive enough to leave some daylight between the next lowest offers, from Hoegh LNG and GasLog, which were understood to have submitted bids close to the $100,000 per day mark.

The Prumo tender attracted interest from a reported 15 potential bidders, but only six made it into a second stage.

Other companies taking part included Excelerate Energy, Golar LNG, Elcano and Teekay LNG, and bids were said to have averaged around $106,000 per day.

Some sources expressed surprise that the Prumo tender has not been concluded yet, because the company has committed to start supplying power to the Brazilian grid by 2021.

The main reason for the delay, Upstream understands, is that Prumo and its partners have been evaluating the pros and cons of using a floating re-gasification system as opposed to a shore-based solution.

The first power plant project, now called UTE GNA 1, stems from Prumo’s decision to take over the 1.3 GW Novo Tempo thermoelectric project from Brazil’s Bolognesi Energia.

The takeover deal, struck last year, includes a plan to transfer construction of the Novo Tempo project from Pernambuco state to Prumo's own Acu port facility.

Bolognesi’s original project came with a firm commitment to supply power to the Brazilian grid from 2021.

Prumo subsequently secured more power purchase agreements with energy sector regulator Aneel and will also build the 1.7 GW GNA 2 power plant at the same Acu port location.

This second plant is due online by 2023.

Prumo has moved more swiftly with the critical civil engineering and construction project for the first of the gas-fired plants, contracting Brazilian construction firm Andrade Gutierrez and German engineering giant Siemens to construct the UTE GNA-1 power station.

Siemens has invested in the GNA-1 project, taking a 33% stake in the LNG terminal and power plant.

UK supermajor BP has already partnered into the GNA consortium, project and has been lined up to supply gas to the development.

The partners have also signed a 23-year lease, renewable for 25 more, for the land where the two power plants will be situated and covering usage rights at Acu port’s north jetty.

Prumo describes the GNA initiative as the first phase of the Acu port gas hub project, which aims to use LNG imports to fuel power plant projects before transitioning to receive associated gas from Brazil’s pre-salt fields.

These plans also include a possible three additional gas-fired power plants, bringing with them to a total 6 GW of power generating capacity.

“Prumo would need about 3.5 MMcmd to supply this project, but took the strategic decision to put in more capacity from the outset rather than face the additional risk of expanding during production,” said one source.

Additional development plans include a connection to a trunkline that connects cities along Brazil’s long northeastern coastline.

“This unprecedented project will see the development, at the port of Acu, of the biggest thermo-electric station in the whole of Latin America, with power generating capacity for 3 GW,” said Bernardo Perseke, chief executive of the Gas Natural Acu (GNA) joint venture.

Investments for the first phase of the GNA project, covering the two gas-fired power stations, the regasification terminal and associated infrastructure have been estimated at 7 billion reais ($1.9 billion), according to Prumo.

This article was updated on 24 June to correct power generating capacity figures.

Weekly

BW LNG low bidder in Prumo Logistica tender