Hoegh LNG signs FSRU charter for Sao Paulo terminal

Norwegian shipowner Hoegh LNG has signed a 10-year charter with Brazil's Terminal de Regaseificacao de GNL de Sao Paulo (TSRP), for use at the planned 4mn t/yr import terminal in Sao Paulo.

TSRP, a subsidiary of local gas trading and distribution company Compass Gas and Energia, will receive the 170,000m³ Hoegh Gannet floating storage and regasification unit (FSRU), with operations expected to begin in late 2022 or early 2023, Hoegh LNG said. The FSRU, which has been operating as an LNG carrier, is at present under a 12-month charter with trading firm Trafigura that began at the start of April. The vessel has largely been undertaking inter-basin journeys, loading cargoes at US Gulf coast facilities for delivery to Asia, and was today sailing towards the Panama Canal having delivered a cargo in China.

Sao Paulo LNG is one of five planned LNG import terminals in Brazil targeting start-up next year. Three of the five terminals, also utilising FSRUs, will be operated by US firm New Fortress, which took over Brazilian LNG and power company Hygo Energy Transition at the start of this year.

Brazilian LNG imports are on course to reach record levels this year compared with previous years, with the country receiving 6.26mn t so far in 2021, up from 1.95mn t in 2020, according to data from oil analytics firm Vortexa, and the highest since at least 2010. A prolonged drought has weighed heavily on the country's hydroelectric reserves this year and increased thermal generation demand.

By Ellie Holbrook