SUAPE-FIRST LNG ENTRY IN SOUTH AMERICA

摘要

Brazil, one of the few countries largely hydro-based (over 90%) is about to embark in a major gas-fired powergen program. The Government decision of increasing natural gas participation in the country's energy matrix associated to consistent power demand growth, higher than 5% per annum, are the main drivers for this program. The Northeastern region of Brazil where the hydro potential is basically exhausted and local gas reserves are insufficient to support long term supply contracts will require a particular solution to comply with future energy requirements such as the importation of LNG. The first LNG Receiving and Regaseification Terminal to be built in Brazil and in South America, will be located at the Suape Port, State of Pernambuco. Aiming at developing this project Petrobras and Shell have recently incorporated a 50/50% Joint Venture named GNL do Nordeste (NE LNG). LNG supplies are likely to come from the Atlantic basin liquefaction plants. The implementation of the Suape Terminal and the introduction of LNG as an alternative source of energy in a poor and dry region will extrapolate the common commercial boundaries of similar projects with significant social implications such as the release of water currently used for power generation to irrigation and other uses. The paper will discuss the challenges associated to the introduction of LNG (for Power Generation purposes) in a market with such unique characteristics mainly due to the enormous seasonality related to river regimes in tropical areas. The requirements of this particular hydro-thermal system will challenge the traditional structure of LNG contracts and creativity will play a major role in accommodating market/suppliers needs in an initial small scale project although with significant growth potential. It will be also discussed the operational and commercial implications deriving from the integration of both domestic and imported gas, the emerging marketing and trading opportunities and the potential benefits for the development of the Region.