Shell cleared to bring Bolivian gas to Brazil and Trafigura to import LNG

RIO DE JANEIRO, BRAZIL – A unit of Anglo-Dutch Shell has been authorized by the Brazilian government to import Bolivian gas to supply the domestic market, while a Trafigura group company has been granted approval to import liquefied natural gas (LNG) from several locations.

The authorizations, published by the Ministry of Mines and Energy in Monday’s Federal Gazette, are effective until mid-2024 and come shortly after Congress passed a bill that aims to establish a new legal framework for the gas sector in Brazil, with the goal of increasing competition in the industry.

The regulatory reform, which now awaits sanction by President Jair Bolsonaro, should encourage more companies to bring imported gas to market in the country, according to experts, while also seeking to encourage local gas production to go to the market, often reinjected into wells to favor oil extraction.

Shell, which had already secured approval to import LNG from several countries last week, has now been given the go-ahead to import Bolivian gas in total volumes of up to 14 million cubic meters daily.

The gas will be transported through the Bolivia-Brazil pipeline, and should have the thermal power plants segment as its potential market, as well as distributors and free gas consumers.

The authorization was granted to Shell Energy do Brasil Gas Ltda. and is effective until March 31st, 2024.

As for Trafigura, it was authorized to import LNG from “several countries” in a total volume of up to 25.6 million m³ of liquefied gas.

Transportation will be conducted by sea, with delivery to the regasification terminal at Todos os Santos Bay in Salvador, with the company targeting free consumers, traders, distribution companies and thermoelectric power plants as potential markets.

Trafigura’s authorization will be effective from June 1st, 2021 to June 1st, 2024.

Source: MoneyTimes