Petrobras Signs Contract for the Leasing of Bahia LNG Terminal
Excelerate, once disqualified from the proceedings, ends up with lease agreement to December 2023.
Petrobras has signed a contract with Excelerate Energy Comercializadora de Gás Natural Ltda. (Excelerate) for the leasing of the Bahia LNG Regasification Terminal of Bahia (TR-BA) and associated facilities, in the amount of $18.8 million effective until December 2023. It has taken multiple bid rounds for Petrobras to find a suitable candidate for the TR-BA lease.
The latest TR-BA lease round was launched in February after the lone bidder in the previous attempt, Golar Power, was disqualified due to being high risk, according to Petrobras. In June, the Brazilian state oil company disqualified eventual winner Excelerate for not complying with the rules of the tender but did not give details on which rules were violated. In August, Excelerate said it had made progress on the lease project through additional negotiations with Petrobras.
The TR-BA initiative is seen as an important step in the process of opening and increasing the competitiveness of the natural gas segment in Brazil and is foreseen in the Term of Commitment of Cessation signed with the Administrative Council for Economic Defense to build a favorable environment for the entry of new investors in the sector.
With Petrobras’ support, Excelerate is seeking the transfer of the licenses and authorizations necessary for the operation of a new regasification vessel at TR-BA. As soon as the new company can operate, Petrobras will move its regasification vessel that is in TR-BA to the LNG Regasification Terminal of Pecém, in Ceará. Excelerate said previously it would deploy one of its existing floating storage and regasification units for service at the Bahia terminal.
The terminal’s capacity allows for regasification of up to 700 MMcf/D and includes a 45-km pipeline with connections to two delivery points in the city of Salvador.