Petrobras Says Brazil May Import 40 Cargoes of LNG by Year-End

Petroleo Brasileiro SA, Brazil’s state-controlled oil company, may import as many as 40 cargoes of liquefied natural gas by the end of the year.

Irregular rainfall affected hydropower production in Brazil this year and the country turned to gas to produce electricity, Marcio Demori, LNG trading manager for the company known as Petrobras,. said today at the World LNG Summit in Barcelona.

LNG cargoes were mostly bought from Trinidad & Tobago and also came from Nigeria, Qatar, Peru, Norway, Abu Dhabi and Equatorial Guinea, he said. There were 15 different counterparties to the deals.

One cargo was reloaded from storage tanks in Belgium and sent to Brazil, Demori said. Brazil will probably receive another cargo reloaded from tanks in the U.S. Petrobras has 33 master sales agreements in place and is negotiating another 40 to 50, according to the manager.

The country began importing liquefied gas in 2009, when it bought seven cargoes. Demori said he didn’t know how much LNG the country will import next year.

Brazil is importing liquefied natural gas to reduce its dependence on Bolivia, the source of about half its daily demand of about 60 million cubic meters.

Petrobras has two LNG carriers on 10-year charters from Golar LNG Ltd. Both have been adapted to regasify LNG on board and pump the gas into Brazil’s pipeline network.

To contact the reporters on this story: Ben Farey in London at bfarey@bloomberg.net;

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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