Petrobras, Mitsui Study South Brazil LNG Import Terminal

Posted by Eric Haun
Wednesday, April 16, 2014
Image: Petrobras

Brazil's state-run oil company Petroleo Brasileiro SA and Japanese trading house Mitsui Corp will study building a liquefied natural gas (LNG) terminal in the country's southernmost state, Rio Grande do Sul, to supply more fuel for local manufacturers and power generators.

Petrobras, as the company is known, announced the plan in a statement late on Tuesday after signing a memorandum of understanding on the project with Mitsui and the government of Rio Grande do Sul. Petrobras, Mitsui and the government have 12 months to conclude their work.

If built, the plant would be Petrobras' fourth LNG import terminal and make it easier for the company to supply gas to power plants in the country's south. The plants are usually turned on to complement hydroelectric power during peak use periods and during dry seasons or drought.

Brazil is in the middle of one of the most serious droughts in decades and has been forced to shut several gas-fired power plants for a lack of natural gas.

(Reporting by Jeb Blount; Editing by Peter Galloway)

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