Petrobras Sells Two LNG Cargoes Amid Terminal Delay

By Ben Farey

Dec. 10 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil company, plans to sell two cargoes of liquefied natural gas that it bought earlier this year because its import terminal isn’t ready, a company executive said.

Marcio Demori, LNG trading manager for the company known as Petrobras, said Brazil is “rearranging” its schedule for LNG imports. The sale of cargoes aboard BP Plc’s British Innovator LNG carrier and the Celestine River vessel is nearly complete, he said.

Both tankers have been unable to offload their cargoes in Brazil and were anchored off the coast of Trinidad until recently, AISLive data show. Only the Celestine River remains off Trinidad now, according to AISLive.

Brazil is importing liquefied natural gas to reduce its dependence on Bolivia, the source of about half its daily demand of about 60 million cubic meters. Bolivian President Evo Morales has nationalized Petrobras assets in the country and sought price increases.

Petrobras has two LNG carriers on 10-year charters from Golar LNG Ltd. Both are being adapted to regasify LNG on board and pump the gas into Brazil’s pipeline network.

The first ship, the Golar Spirit, arrived at the Pecem terminal in July. Imports there were due to begin this summer but were delayed by onshore pipeline work, Petrobras said last week. The first LNG is now expected to be unloaded in January.

LNG Facilities

Demori said the Golar Winter, also being refitted to regasify LNG, will arrive at Guanabara Bay near Rio de Janeiro in May. The ship was due to arrive some time this year. Petrobras may build a third facility to meet growing demand for the fuel, he said.

Maria das Gracas Foster, head of the company’s gas and energy unit, said last week she needs to maintain access to gas to contain costs for generating electricity, even if that means keeping cargoes anchored with no place to go.

“I’d rather have a string of LNG ports all up and down my coast than be dependent on a single pipeline for my gas,” she said in a Dec. 5 interview. “If I didn’t have the gas to fire up Petrobras’ thermal plants I have to pay the spot market price.”

To contact the reporters on this story: Ben Farey in London at bfarey@bloomberg.net;