Brazil LNG Import Terminal

Golar Power Brazil reported that the group has signed a “protocol of Intentions” with the Pernambuco State Government for the development of Brazil’s first private LNG Import Terminal within the Suape Port complex, in the state of Pernambuco. Private investments are predicted to range around US $500 million, with approximately 300 direct and indirect new jobs expected to be generated. The terminal is scheduled to initiate operations in January 2021. 

Through the signing of a protocol of intentions with Golar Power Brazil, a joint-venture between Norwegian Golar LNG and the U.S. private equity fund Stonepeak Infrastructure Partners, the state of Pernambuco aims to not only supply LNG within its boundaries but also to export it to other states via cabotage. 

The operation includes a permanently docked LNG vessel at the port which will have 135 thousand m³ capacity. In addition to supplying LNG to a power generation plant in the Suape complex, the hub will also supply LNG to industrial, residential, commercial, and gas stations demands. Current and under construction pipelines will partially drain the LNG supply to end-users and consumers. IsoTank Container trucks will distribute LNG to the region within a 1000 kilometer radius; cabotage will be the method utilized to carry the LNG to other states, and smaller LNG vessels will move it to different hubs/ports throughout the Brazilian coast. 

Brazil LNG imports increased approximately 17-20% in 2019. Golar estimates that an initial 800 m³ of LNG per day will be distributed by trucks out of the Suape Terminal. Over 500 thousand tons per year in volume movement (increase) is expected in the complex. Cryogenic engineering solutions and technologies that optimize existing equipment performance are needed. Among the predicted new developments are: LNG regasification structure and equipment, operational infrastructure, maintenance and technical centers, distribution stations and networks.

The region also plans to replace existing diesel-filled trucks and buses with vehicles capable of running with natural gas. Other equipment needs include: LNG Dispensers, L-CNG Dispensers, LNG Pump Skids, LNG storage Tanks, Buffer Tanks (L-CNG), High Pressure Vaporizers, High-Pressure Pumps, and Iso Containers. The LNG will likely be sourced out of four different countries, one of which is the United States. U.S. LNG suppliers as well as suppliers LNG goods and service technologies are encouraged to explore business opportunities in Brazil by visiting the country and meeting with technical teams and decision makers.

For more information contact regina.cunha@trade.gov.