Petrobras Authorized to Export Idle LNG CargoesPosted by Michelle Howard
Brazil's Petroleo Brasileiro SA has been authorized to export idle liquefied natural gas (LNG) in the spot market, according to the Wednesday issue of the official gazette.
According to the text, Petrobras has been given the green light to export up to 6.6 million cubic meters, assuming this would not result in supply problems for the domestic market. As a state-controlled company, some of Petrobras' commercial strategies require energy ministry authorization.
Petrobras operates three regasification terminals in Brazil, which were built in a time when the country was seeing high economic growth rates and natural gas consumption was strong.
But demand fell in the last two years while Brazil went through its deepest recession on record, and local production continued to grow.
The official gazette note did not provide information regarding the current level of LNG stocks in the country.