Pernambuco state to launch new tender for LNG terminal deployment

Brazil’s Pernambuco state plans to launch a new tender for the leasing of a pier at the Suape port for the installation of a liquefied natural gas (LNG) regasification unit. 

The original process was cancelled last week because the Suape port administration did not consult federal authorities, such as the infrastructure ministry (Minfra) and oil and gas regulator ANP, prior to the publication of the tender notice, a source familiar with the matter, who spoke on the condition of anonymity, told BNamericas. 

“Besides, the tender was badly written. It was unanimous. Several risks and criteria were not observed,” the source said. 

Other problems were the project’s “very aggressive” 120-day implementation deadline and the requirement to connect the terminal to a treatment and custody station that is yet to be built by Pernambuco’s gas distributor Copergás and Transportadora Associada de Gás (TAG), within the same deadline, the source added. 

The date for the launch of the new tender has not been announced yet. The minimum bid of the cancelled tender had been set at 700,530 reais (US$125,637). 

Five companies have confirmed interest in deploying an LNG regasification unit at Suape: TotalEnergies, Aruanã Energia (belonging to Oncorp), New Fortress Energy, Edge (a unit of the Cosan group’s Compass Gás e Energia) and Sonne Energias Renováveis. 

The latter three plan to use the product to fuel new thermoelectric power plants to be built in the area, while Edge intends to deliver the gas supplied by Shell to Copergás. TotalEnergies has not provided details about its plans.