Brazil's Petrobras Signs 22-Year LNG Purchase Agreement with Cheniere for 0.8 MTPA

Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

Summary

Petrobras signed a 0.8 MTPA LNG purchase contract with U.S.-based Cheniere Energy as the market remains volatile amid QatarEnergy's force majeure. Brazil is an LNG importer, while Argentina is developing its LNG export capacity.

Deal Aims to Shield Petrobras from Volatile Spot Prices

Petrobras, the Brazilian state oil and gas company, signed a 22-year agreement with Cheniere Energy to purchase 0.8 million tonnes per annum (MTPA) of liquefied natural gas (LNG). Petrobras is seeking to reduce its exposure to volatile LNG spot market prices and guarantee the company's long-term supply security.

The agreement comes at a key time. It follows QatarEnergy's extension of force majeure on its deliveries to Edison, an Italian LNG importer, until early December 2026. So far, QatarEnergy has cancelled 35 of Edison's LNG cargoes between April and early December 2026.

That announcement adds to global LNG supply concerns triggered by the conflict between the United States and Iran, which has led to the closure of the Strait of Hormuz and attacks on energy infrastructure in the Persian Gulf countries.

Attacks on Qatar's Ras Laffan LNG export terminal damaged two liquefaction trains that limited export capacity and could take as much as three years to repair. Qatar accounted for roughly 20% of global LNG exports in 2025.

The U.S. is the world's largest LNG exporter, accounting for 26% of global exports in 2025. Disruptions in the Persian Gulf could create additional opportunities and expansions for U.S. LNG suppliers.

Together, the U.S., Qatar and Australia--the three largest LNG exporters--accounted for 61% of global LNG exports in 2025.

Brazil and Other South America LNG Projects

Brazil is an LNG importer, and Industrial Info Resources' database shows seven active floating storage and regasification units (FSRUs) in Brazil used to receive, store and regasify LNG, including the Barcarena FSRU and the São Paulo Santos FSRU.

At the same time, Industrial Info Resources is tracking 10 LNG terminal projects that include seven FSRUs, as well as storage additions and maintenance projects, representing US$1.48 billion in investments. These FSRUs could receive, store, and regasify imported LNG to supply domestic industries and markets.

Meanwhile, Argentina has gained the spotlight in the LNG sector as it seeks to ramp up its LNG-export infrastructure and become a key global supplier. The nation currently has two major LNG export projects in the pipeline. The Argentina LNG project is forecast to have a capacity of 12 MTPA with the possibility to expand it to 18 MTPA. Additionally, the Southern Energy (SESA) project plans to deploy two floating liquefaction units with a combined capacity of 6 MTPA.

Key Takeaways

• Petrobras signed an agreement to purchase 0.8 MTPA of LNG from Cheniere.
• QatarEnergy's force majeure adds pressure to the market.
• Brazil is an LNG importer, but Argentina is building its export capacity.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).