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Brazilian Holding Oncorp Was Chosen by the Government of Pernambuco for the Installation of the LNG Terminal in the Port Complex
Suape Port, located in the metropolitan region of Recife (PE), has much to celebrate in 2022 due to successful negotiations throughout the year. Several important projects for the modernization of the port complex of Pernambuco, with billion-dollar investments and the prospect of generating thousands of jobs, were confirmed this year. The latest successful announcement was the confirmation of the implementation of a liquefied natural gas (LNG) terminal.
The confirmation of the project had been awaited for a few months. In October, the Government of Pernambuco had chosen the Brazilian holding OnCorp for the works of the liquefied natural gas regasification terminal, but was waiting for the authorization from the National Agency of Waterway Transportation (Antaq) to formalize the leasing contract, even though Suape Port had its autonomy restored, which was already an achievement of the local public administration in 2022.
The liquefied natural gas terminal at Suape Port is considered one of the largest projects of its kind in South America. It consists of a floating storage and regasification unit to be installed at an existing mixed-use pier in the port complex. This construction is expected to 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, the state distributor of Pernambuco. The expectation is that 500 jobs will be created with the works.
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OnCorp plans to connect the regasification terminal to the liquefied natural gas distribution network of Copergás. The leased area for use is 33,375 m². Suape Port will receive R$ 6.2 million over the 48 months of the contract (R$ 131.1 thousand per month). Operations without the FSRU will begin 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.
The Achievements of Suape in 2022
Suape Port was one of the locations that felt the negative impact of the collapse of the Brazilian shipbuilding industry, following the corruption scandals revealed by Operation Car Wash. The port complex of Pernambuco was once responsible for “job booms”, especially due to operations at the Atlântico Sul Shipyard between 2007 and 2014, with over 11,000 workers at EAS, and now has just over 500 workers.
However, the prospects for modernization and job creation in what is the largest and most important port complex in the Northeast are quite promising.
In addition to the liquefied natural gas regasification terminal announced by the Government of Pernambuco, Suape Port also closed a deal with Maersk, the largest maritime logistics company in the world. In July, the company won an auction for part of the Atlântico Sul shipyard and will build a container terminal at the site.
In November, the Port closed a deal for the Dutch company Royal Van Oord to complete the dredging of the main channel of the dock to a depth of 20 meters along its entire length. In September, a billion-dollar project for the construction of a minerals terminal by the Bemisa group, one of the largest in Brazil in the field of mineral exploration and export, was announced. The area designated for the project is Ilha de Cocaia. It is expected that 3,000 jobs will be created during the construction and another 400 during the operation.
It is estimated that by 2027, Suape Port will accumulate more than 44 billion in investments, which should generate 25,000 jobs.
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