Brazilian natural gas companies are expanding small-scale LNG distribution in the face of persistent obstacles to accessing pipelines dominated by state-owned Petrobras.
"Small-gas LNG distribution is on our radar screen and is an important step to increasing the market," the new business director of LNG-to-power company Gas Natural Acu (GNA) Carolina Lachmann said in a webinar. GNA operates Brazil's second independent LNG regasification terminal and is eyeing the country's burgeoning wholesale market.
Although the company is working on connecting its terminal to the pipeline network, it has been hamstrung by a lack of transparency regarding transport costs.
"It is important to connect to the gas transport network," she said, adding that GNA is now working to supply LNG to clients that lack pipeline access.
Industrial gas company White Martins, whose subsidiary Gemini GasLocal operates a liquefaction terminal in Paulinia, Sao Paulo state, sees significant potential for the expansion of small-scale LNG distribution. White Martins recently purchased Petrobras' 40pc stake in Gemini following an anti-trust investigation.
"We have very strong industrial demand," hydrogen and LNG director of White Martins Guilherme Ricci said, adding that industries without pipeline access see LNG as a viable option.
Other companies also see the potential for this market. LNG company New Fortress Energy is in the final stages of commissioning its regasification terminal is Petrolina, located 750km (466mi) from the coast in central Pernambuco state, where it will supply up to 40,000 m³/d of regasified LNG. The LNG is transported by truck in ISO containers to Petrolina, where it will be distributed by local gas company Copergas. A similar project will begin operating shortly in neighboring Garanhuns.
New Fortress also has a supply contract of 150,000m³/d with Santa Catarina gas distributor SCGas to deliver LNG by truck from its regasification terminal that is under construction.
Small-scale LNG also has potential in the Amazon basin, which currently relies heavily on high-cost diesel for both transport fuel and for power generation. Local energy company Eneva sees up to 8.8mn m3/d of potential demand in northern Brazil. Eneva is concluding a reserve-to-wire project at the Azulao field in Amazonas state. The gas will be liquefied and transported by truck to a thermoelectric plant in nearby Roraima state.
