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SOUTH AMERICAN ENERGY DAILY ROUNDUP (March 19, 2009): Petrobras plans to build LNG liquefaction plant

March 19, 2009

South America Energy Markets (SAEM) will begin a daily roundup of the top-five stories affecting energy markets in the region with links. The roundup includes all the major web dailies of South America and other websites that write about the region’s energy markets. I aim to publish SAEM Daily Roundup from Monday through Friday by noon London time.

March 19, 2009


Energy company Petrobras said that it is studying the possibility of building a liquefaction plant in southeast Brazil, reports Brasil Energia. Petrobras gas and energy director, Maria das Gracas Foster, said that increased gas output offshore Espirito Santo and Campos Basins offered too opportunities to build such a plant. The energy company’s 2009-13 business plans plans to earmark $3 billion in LNG projects. Gracas Foster’s announcement is nothing new. Building a liquefaction plant to take advantage of the Espirito Santo, Campos and Santos Basins’ prodigious gas reserves makes a lot of sense. Will Brazil become the third South American country to build liquefaction capacity after Peru and Venezuela?


Petrobras gas and energy director, Maria das Gracas Foster, reiterated Brazil’s plans to build two additional regas LNG terminals between 2013 and 2014. The southern states of Santa Catarina and Rio Grande do Sul are vying for the new terminal to be build in their state. A possible site for the fourth regas terminal could be the northeast state of Bahia. Das Gracas Foster said that the country has the potential to supply the domestic market with 113 million cu m/day. That includes gas imports from Bolivia.


Despite Bolivia’s deep political, economic and regulatory woes, India’s Jindal Steel & Power project in eastern Bolivia will move ahead with the first machinery arriving to the Puerto Suarez region to  exploit iron-ore, according to Bolivian state-owned newsagency ABI. The project will start using 4.64 million cu m/day from 2012 and then rise to 7.69 million cu m/d from 2016, according to hydrocarbons ministry forecasts. Jindal plans to build a 450MW combined cycle gas turbine (CCGT) plant next to the mill.  The project is one of the few bright spots in foreign investment to the country.


(Published on March 18, 2009) Brazilian power giant Eletrobras now states that it will invest in the 2009-12 business plan 30 billion reales ($13.2 billion/€10.2 billion) not $22 billion reales announced earlier (see South American Energy Daily Roundup, March 17, 2009) . The investment plan includes taking part in 7GW of new generation projects, build 15,000km of transmission lines. The interesting matter to watch is how these investments will pan out by 2012.


(Published on March 18, 2009) State-owned power company UTE plans to launch soon a tender to purchase 250MW of wind-turbine generating capacity at a cost of about $270 million, according to Montevideo daily El Pais. Building such an big wind park forms part of the government’s plan to diversify power generation. About two thirds of Uruguay’s power needs come from hydropower installations and imports from Argentina.

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