Port of Suape announces liquefied natural gas gasification terminal and thus closes 2022 with confirmed major undertakings and job prospects

Brazilian holding Oncorp was the company chosen by the Government of Pernambuco for the installation of the LNG terminal in the port complex

The Port of Suape, located in the metropolitan region of Recife (PE), has much to celebrate in 2022 due to successful negotiations throughout the year. Several important undertakings for the modernization of the Pernambuco port complex, with billionaire investments and the prospect of generating thousands of jobs were confirmed this year. The last successful announcement was the confirmation of the implementation of a liquefied natural gas (LNG) terminal.

Confirmation of the venture had been awaited for a few months. In October, the Government of Pernambuco had chosen the Brazilian holding company OnCorp for the works on the liquefied natural gas gasification terminal, but was waiting for authorization from the National Waterway Transport Agency (Antaq) to formalize the lease, even though the Port of Suape had its autonomy returned, which was already an achievement of the local public administration in 2022.

The liquefied natural gas terminal at the Port of Suape is considered one of the largest projects of its kind in South America. It is a Floating Ship Regaseification Unit for gasification and LNG storage to be installed on an existing mixed-use pier in the port complex. This construction should be much faster than if it were offshore, according to industry experts. The site will be used by the Anglo-Dutch company Shell, which will supply imported natural gas to Copergás, Pernambuco's state distributor. The expectation is that 500 jobs will be generated with the works.

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OnCorp intends to connect the gasification terminal to the Copergás liquefied natural gas distribution network. The leased area for use is 33.375 m². The Port of Suape will be remunerated at R$ 6,2 million over the 48 months of the contract (R$ 131,1 thousand per month). Operations without the FSRU start next week and with the FSRU in the next 12 months. Shell agrees to supply Copergás with 750.000 m³/d of gas in 2022 and 1 million m³/d in 2023.

Suape's achievements in 2022

The Port of Suape was one of the places that most negatively felt the sinking of the Brazilian shipbuilding industry, after the corruption scandals revealed by Operation Lava Jato. The port complex in Pernambuco came to be responsible for “job rains”, mainly due to operations at the Atlântico Sul Shipyard between 2007 and 2014, with more than 11 workers at EAS, and now has just over 500 workers.

But the prospects for modernization and job creation, in what is the largest and most important port complex in the Northeast, are the best.

In addition to the liquefied natural gas gasification terminal announced by the Government of Pernambuco, the Port of Suape also closed a deal with Maersk, the largest maritime logistics company on the planet. In July, the company won an auction for part of the Atlântico Sul shipyard and will build a container terminal on the site.

In November, the Port reached an agreement for the Dutch company Royal Van Oord to finish dredging the main channel of the berth to deepen it by 20 meters along its entire length. In September, a billion-dollar project for the construction of a mineral terminal by the Bemisa group, one of the largest in Brazil in the field of exploration and export of minerals from Brazil. The area destined for the undertaking is the Island of Cocaia. 3 thousand jobs are expected in the works and another 400 during the operation.

It is estimated that by 2027 the Port of Suape will reach more than 44 billion in investments, which should generate 25 thousand jobs.