New Fortress Energy expects Brazil's LNG demand to rise

New Fortress Energy (NFE) expects an increase in demand for liquefied natural gas (LNG) in Brazil in the coming years, driven by the industrial and thermoelectric sectors. 

“Part of this demand will be supplied by NFE, which will have projects totaling 2.2GW of capacity, with operations expected to begin in the next two years,” the company told BNamericas through its press office. 

NFE has LNG terminals in Barcarena, Pará state, and in São Francisco do Sul, Santa Catarina state, in both cases with the capacity to regasify 15Mm3/d.   

In Pará state, the terminal serves Norsk Hydro's alumina refinery Alunorte and will start supplying gas in 2025 to NFE’s Novo Tempo Barcarena thermal plant (630MW), construction of which is 80% complete.  

The Santa Catarina terminal serves local residential and industrial consumers, such as ceramics manufacturers. NFE also has a contract with Transportadora Bolívia Brasil (TBG) to supply thermal power plants in the region.  

The 2.2GW in projects includes the Barcarena thermal project and a 1.6GW power purchase agreement (PPA) acquired from Portocém in December 2023 that will be transferred to new assets connected to its LNG terminals in the country. 

New authorizations 

On Monday Brazil’s oil and gas watchdog ANP authorized NFE subsidiary NFE Power Distribuidora de Gás Natural to import up to 1.7Mm3 per year of LNG from “several countries” to serve states in the south, southeast, north and center-west regions of the country. 

The transportation will be carried out by road, and the delivery points will be in Santa Catarina and Pará, adjacent to NFE’s LNG terminals. 

NFE clarified that the authorization granted by the watchdog is aimed at the operation of its small-scale subsidiary and is therefore a smaller volume. 

“This is just one of several requests for authorization that are in progress with the competent bodies,” the company’s press office told BNamericas. 

Meanwhile, Shell Energy do Brasil received approval to import up to 8Mm3/d of natural gas from Argentina and Bolivia to supply to free consumers and piped gas distribution concessionaires. 

Transportation will be handled via the Gasbol (Bolivia-Brazil) pipeline, and the delivery points will be Corumbá and Mutum in Mato Grosso do Sul state. 

Shell declined to comment on the matter. 

Both authorizations are valid for two years. 

Context

Brazil’s natural gas imports this year have already surpassed the volumes imported in 2023, according to data from the federal government.

The rise in fuel imports is a consequence of a serious drought that the country experienced for most of 2024. 

The national current LNG regasification capacity stands at approximately 125Mm3/d, considering the terminals in Pará, Sergipe, Santa Catarina, Rio de Janeiro, São Paulo and Bahia.