Brazil Scheduled to Get LNG Cargo at Guanabara Bay From Nigeria

Petroleo Brasileiro SA, Brazil’s importer of liquefied natural gas known as Petrobras, is scheduled to receive a spot cargo from Nigeria over the weekend, according to ship-tracking data.

The LNG Lagos, with a capacity of 122,255 cubic meters, arrived May 19 at Rio de Janeiro and will discharge its cargo on May 26, according to ship transmissions captured by IHS Fairplay on Bloomberg. The tanker sailed from Nigeria LNG Ltd.’s Bonny Island terminal, where it loaded the supercooled natural gas on May 4.

A Petrobras official in Houston and Kudo Eresia-Eke, an Abuja-based spokesman at Nigeria LNG, didn’t immediately respond to e-mails seeking comment outside normal working hours.

Brazil’s driest rainy season in a decade has reduced hydropower supply, boosting the country’s LNG demand, Goldman Sachs Group Inc. (GS) said in a Jan. 28 note. Petrobras has a floating regasification terminal at Guanabara Bay near Rio de Janeiro.

Brazil doesn’t have long-term LNG supply contracts with Nigeria, according to data compiled by Bloomberg.

Nigeria LNG, Africa’s largest exporter of the fuel, said it declared force majeure May 15 on exports after Royal Dutch Shell Plc (RDSA) discovered a pipeline leak and halted deliveries.

The declaration followed Shell’s shutdown of its Gbaran Ubie and Soku gas facility after the pipeline leak, Eresia-Eke said May 17 in an e-mail. Force majeure is a legal step that protects a company from liability when it can’t fulfill a contract for reasons beyond its control.

Latin America’s LNG import capacity will increase to 49.2 million metric tons a year in 2020 from a projected 30 million this year, Anton Safronov, Total SA’s (FP) LNG origination director, said May 9 in Singapore.

To contact the reporter on this story: Chou Hui Hong in Singapore at chong43@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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