Demand Soars for LNG Terminals in Brazil

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Researched by Industrial Info Resources (Sugar Land, Texas)--Since 2006, the Brazilian federal government has been striving toward energy independence from Bolivia. The process started after Bolivia changed its hydrocarbons policy that same year. The need to supply the local market has pushed Brazil to put liquefied natural gas (LNG) terminals with regasification onboard. So far, two plants are operating, and a third terminal would satisfy the increasing LNG demand in southern Brazil.

The Bahia de Guanabara LNG terminal is capable of regasifying 14 million cubic meters of natural gas per day and primarily supplies the thermoelectric plants in southeastern Brazil. Pecem LNG Regasification Terminal, in the state of Ceara, is able to regasify 7 million cubic meters of natural gas per day. The gas processed in Pecem is used mainly by the Termoceara and Termofortaleza power plants in the Ceara state and the Jesus Soares Pereira power plant in the Rio Grande do Norte state.

The construction of a third LNG terminal is being studied by Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil) due to the increasing demand for Bolivian LNG in southern Brazil. The project underwent environmental studies on September 16. A fourth LNG terminal is planned for the future, possibly in the state of Pará, but its construction will depend on Brazil's short- and long-term economic growth.

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