OnCorp selected to build Brazil LNG terminal

Brazil's OnCorp was selected to build an LNG regasification terminal at Suape port in Pernambuco, which will be used by Shell to supply imported natural gas to state-controlled distributor Copergas.

The port, which is controlled by the Pernambuco state government, chose OnCorp to install the terminal from among five bids in a public tender.

The project includes a floating storage and regasification unit (FSRU) to be located at an existing mixed-use pier in the port, which should result in faster construction than building offshore. OnCorp in its proposal last year said it already has a leasing contract for an FSRU.

The project will require investments of R220mn ($42mn) and will have the capacity to import 4mn-9mn m³/d of natural gas. The Pernambuco government believes the terminal has potential to become an LNG import hub for northeastern Brazil, and Copergas plans to market gas from the terminal to northeastern consumers.

OnCorp plans to connect the terminal to Copergas' gas distribution network. In late 2020, Shell agreed to supply Copergas with 750,000 m³/d of gas in 2022 and 1mn m³/d in 2023. Shell has an agreement with OnCorp to use the terminal.

The terminal also has the potential to be connected to the Transportadora Associada de Gas' (TAG) gas transport grid.

OnCorp has agreed to pay R6.3mn to the state government to lease the pier for 48 months.