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Brazilian Company Was Selected by the Government of Pernambuco for the Construction of the Terminal; Project Which Is One of the Largest in Latin America Awaits Approval from Antaq
The Government of Pernambuco chose the holding company Oncorp to build a liquefied natural gas (LNG) regasification terminal at the Port of Suape, the most important port complex in the Northeast region, located in the municipality of Cabo de Santo Agostinho, part of the metropolitan region of Recife. The project will optimize the product distribution for the region and contribute to the sector’s growth.
The venture, already considered one of the largest in South America, consists of a floating regasification and LNG storage unit to be installed at an existing multi-use pier in the Port of Suape. According to experts, the construction should be significantly faster than if it were offshore. The site will be used by the Anglo-Dutch company Shell, which will supply imported natural gas to Copergás, the local state-owned distributor. The expectation is that 500 jobs will be created with the construction.
OnCorp’s proposal was the only one approved by the Port of Suape for the installation of the liquefied natural gas regasification terminal at the multi-use pier. The bid presented by the Brazilian company was 6.3 million reais for a 48-month leasing period. It is estimated that the terminal project will cost about R$ 220 million and will have a capacity to import 4mn-9mn m³/d of LNG.
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OnCorp intends to connect the regasification terminal to the gas distribution network of the state-owned Pernambuco company Copergás. There is also the possibility of the venture being connected to the gas transportation network of Transportadora Associada de Gás (TAG). Shell agrees to supply Copergás with 750,000 m³/d of gas in 2022 and 1 million m³/d in 2023.
Despite Autonomy, Port of Suape Awaits Authorization from Antaq
Even with the return of autonomy, the Port of Suape awaits authorization from the National Waterway Transportation Agency (Antaq) to formalize the leasing contract with Oncorp. In October, the resumption of autonomy at the Port of Suape was announced in the Official Gazette. The text defines the responsibilities of the State of Pernambuco and what belongs to the Federal Government.
In practice, the planning of the port sector is the responsibility of the federal government, while the operation of docks and piers, as well as leasing contracts and the establishment of tariffs, is managed by the Port Authority.
The autonomy allows the Port to conduct studies, prepare public notices, carry out bidding processes, and conclude contracts related to port leases more swiftly and with less bureaucracy. This condition was lost in 2013 when the so-called Port Law came into effect. As a result, all decisions were conducted by the Federal Government.
In February, Antaq had determined the suspension of the bidding process for the installation of the LNG terminal at the Port of Suape. The process had begun in 2021. That decision included a requirement for the bidding rules to be reviewed by the Grant Superintendence for “conclusive analysis.”
The Importance of Suape for Brazil
Pernambuco is located among the main capitals of the Northeast and is the state with the highest concentration of GDP in the region. The Port of Suape is an industrial complex where various companies seek energy solutions and optimization of logistics.
The renewable energy sector is one of the major bets for the growth of the Port of Suape. The administration has already opened a public call for companies from around the world that produce green hydrogen to settle in the area. Currently, six companies have already shown interest in producing H2V at the Port: Qair, Casa dos Ventos, Brid Logístic, White Martins/Linde, Neoenergia, and Suape-Senai.
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