MercoPress. South Atlantic News Agency

Petrobras diversifies LNG provision; signs accord with Shell

Brazil's government managed oil corporation Petrobras and Shell have signed a liquefied natural gas (LNG) “firm” supply agreement to furnish the Pecém (Ceará) and Baía de Guanabara (Rio de Janeiro) re-gasification terminals.

The agreement addresses part of Petrobras' imports capacity and together with other agreements under negotiation should help ensure a reliable provision of natural gas for thermoelectric power generation in Brazil, said an official release on Wednesday from the corporation. Petrobras which currently imports over 60% of its natural gas from Bolivia (30 million cubic meters per day) is planning in the mid term to purchase 20 million cubic meters per day of LNG. Some of the country's demand is supplied by limited production from offshore wells and in the Amazon. "For Petrobras partnership with Shell is very important. This agreement also shows the efforts Petrobras has undertaken to acquire firm LNG volumes to complement Brazil's demand for natural gas" said Petrobras' Director for Gas & Energy, Maria das Graças Silva Foster. "Shell is very pleased to be part of this agreement for firm LNG supplies to Brazil. This is yet another of the many pioneering events that have always marked Shell's commitment throughout its 95 years of operations in the country" said AntÃÂ'nio Assumpção, President of Shell Southern Cone Gas & Power.