Companies put obstacles before new LNG terminal in Pecém

One year before the end of Petrobras’ exclusivity in the operation of pier two at the Port of Pecém, competitors of the state-owned company are mobilizing to install a new LNG regasification terminal in the complex.

The market expects to see a race for developing the business. At least two projects are being discussed with CIPP, the company responsible for managing the port complex. Both are spearheaded by two major global suppliers of liquefied natural gas (LNG):

• Shell has a contract to supply LNG to the 1.6 GW thermoelectric plant that the Portocem consortium negotiated in the December 2021 capacity auction, with an expected start-up in 2026.

The multinational opened talks with OnCorp for a possible partnership along the lines of the agreement that the two companies have for the installation of a terminal in Suape: that is, the oil company supplies the LNG, and OnCorp provides regasification infrastructure, with an estimated capacity for 13 million m³/day. The negotiations are still embryonic;

• At the beginning of the year, bp signed a memorandum of understanding with Ceará to install a gas hub in the Port of Pecém. The idea is to build an LNG terminal associated with a 2.2 gigawatt (GW) thermoelectric project. The multinational is part of a thermoelectric project associated with LNG import operation in the Port of Açu through Gás Natural Açu (GNA).

“The race is on”

The Port of Pecém is Private Use Terminal (TUP), and bidding is not necessary to decide who will build the terminal. Instead, these projects are negotiated bilaterally with the port complex.

The president of CIPP, Danilo Serpa, told the epbr agency that the Port of Pecém has an investment capacity and sufficient area to house more than one terminal.

“We will be able to house in our port terminal the enterprise that demonstrates viability in the most effectively and efficiently possible way,” he said.

The question is whether there is market space for two terminals in the state.

“Whoever can, in theory, present the most mature project and make it viable more quickly and efficiently will lease the pier and install the terminal. The race is on,” commented an executive from one of the companies involved in the negotiations.

Source: EPBR

To read the full original article, please go to: https://epbr.com.br/empresas-se-movimentam-em-corrida-por-novo-terminal-de-gnl-de-pecem-no-ceara/

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