Brazilian gas-to-wire operator Eneva announced on Monday that it had signed a cooperation deal with energy investment company Servtec Investimentos e Participacoes to explore the construction of an LNG terminal at Sao Luis in Maranhao state. The agreement provides Eneva with exclusive rights to the project until December 30, 2022, followed by a right-of-first-refusal to the project until December 30, 2023. If the deal advances, Eneva and Servtec will set up a 51/49 joint venture to build the terminal. Eneva said it would make a final investment decision on the project after securing required licenses and authorizations.
Eneva’s proposed terminal is included in the growing list of similar projects in Brazil. The country is expected to have up to eight LNG import terminals in operation within the next few years, compared to five currently. The expansion is a result of Brazil’s regulation reform aimed at raising domestic gas supplies, cutting prices, and boosting consumption ahead of the expected surge in the country’s offshore gas output. Brazil’s Energy Minister Bento Albuquerque said the country would turn into an LNG exporter in the next five to eight years, with domestic gas production expected to more than double to 260 MMcmd by 2030.
