Petrobras weighs LNG exports as Asian demand rises

Petrobras is assessing the possibility of exporting liquefied natural gas from its giant offshore fields as demand for the fuel grows in Asia and other markets.

The plan could open a new route for Petrobras LNG exports, using gas produced in Brazil’s deepwater Atlantic basins.

Petrobras CEO Magda Chambriard said the company is in talks with Singaporean shipbuilder Seatrium on ways to liquefy and export gas from those offshore areas.

“We see room to export gas using LNG vessels,” Chambriard said during a joint press conference with Seatrium in Singapore on Thursday, August 27.

The move comes as countries in Asia and other regions seek new LNG supply sources beyond Qatar, which is facing severe export constraints during the war with Iran.

Chambriard did not provide a timeline for possible LNG exports by Petrobras or say how much the company could invest in the initiative. A facility to liquefy the gas would need to be built first.

Brazil’s offshore gas potential

Brazil is one of South America’s largest natural gas producers, supported by its ultra-deepwater oil and gas reservoirs under a thick layer of salt off the country’s Atlantic coast.

Much of that gas comes from the pre-salt province, one of Brazil’s most important energy frontiers. But instead of being sold, more than half of the gas is reinjected into oil wells to boost crude production.

“We export a lot of crude oil to Asia-Pacific — it is our main destination,” Chambriard said. “Looking ahead, we see that perhaps it could also become the main destination for gas.”

The possibility of Petrobras LNG exports would connect Brazil’s offshore gas production with fast-growing Asian energy demand, although the project would require liquefaction infrastructure, commercial agreements and regulatory clarity.

Chambriard’s comments in Asia came as Petrobras may face a setback in Brazil. A proposed regulation could require companies with significant market share to make part of their natural gas supply available to competitors.

Source: Bloomberg Linea

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