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    Petrobras Invites Bids for LNG Terminal Lease


Petrobras is liberalising Brazil's gas sector, while scaling back midstream and downstream operations to focus more on deepwater production.

by: Joseph Murphy

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Petrobras Invites Bids for LNG Terminal Lease

Brazilian oil firm Petrobras has called for bids for the leasing of its LNG regasification terminal and associated facilities in the northeast state of Bahia, it announced on August 3.

Under an agreement with antitrust regulators in June last year, Petrobras is working to liberalise Brazil's gas sector, to boost investment in gas supply and infrastructure. The Bahia terminal can import up to 700mn ft3/day or 7.2bn m3/yr of gas and is connected to two onshore delivery points via a 45-km pipeline.

The leasing offer does not cover Petrobras' floating storage and regasification unit at Bahia, but does include power generation and supply equipment at an onshore gas-fired power station at the Madre de Deus Waterway terminal.

"The leasing is in line with the company's strategy of improving its capital allocation and building a favourable environment for new investors to enter the natural gas sector," Petrobras said in its statement.

Petrobras is also looking to scale back its midstream and downstream operations to focus more on deepwater offshore projects. It recently sold its remaining stake in Brazil's largest gas pipeline company TAG to France's Engie and Canadian investor CDPQ, and is also seeking bids for a 10% share in another pipeline operator NTS.