SHELL SIGNS CONTRACT TO SUPPLY LNG IN PARÁ

Nov 13, 2019

Shell International Trading Middle East Limited has signed a commitment agreement with Hidrovias do Brasil to supply LNG to the Vila do Conde thermal power plant (UTE), which the Brazilian company intends to build in Barcarena, Pará.

The agreement with the Anglo-Dutch oil company subsidiary foresees fuel supply for 25 years, if power plant – which will have a gross power of 1,666 MW – is contracted in the next A-5 auction of the National Electric Energy Agency (Aneel) in 2020.

The plant could consume up to 6.7 million m³ / d of natural gas. The volume will arrive via a pipeline connected to a floating regasification unit (FSRU), at the Hidrovias do Brasil private use terminal (TUP) in Vila do Conde. The vessel will have the capacity to store 200,000 m³ of LNG and regasify 14 million m³ / d.

The volume will be imported from the United States or other locations that are part of Shell’s portfolio. The transportation will be by charter vessels chartered by Shell International Trading Middle East.

The company also has a commitment term signed with Distribuidora de Gás do Pará, which provides for the possibility of placing up to 300,000 m³ / d in its market, depending on the volume of electricity contracted in A-5.

The project was qualified to participate in the A-6 auction, held last October, but did not win. At the same event, UTE Novo Tempo was also contracted, also in Barcarena – a venture of Centrais Elétricas de Barcarena (CELBA) in association with Golar Power and Evolution Power Partners (EPP).

Hidrovias do Brasil is an integrated logistics solutions company born from a startup funded by the Patria Investment Fund, which today accounts for 55.8% of its corporate structure.

 Keeping an eye on gas

 Vila do Conde is not the only thermoelectric project with which Shell is involved in Brazil. In 2023, the Marlim Azul TPP is scheduled to start operating in Macaé (RJ), which will be supplied with gas produced in pre-salt fields (the oil company is a partner of Petrobras in the Lula and Sapinhoá fields and has been acquiring new assets in the Santos Basin at ANP auctions).

In September, the company’s president in Brazil, André Araújo, pointed out that Shell is looking for opportunities to monetize its pre-salt gas reserves, mainly in power generation and energy commercialization for large industrial customers.

Last month, the company participated in the public call of the Northeast gas distributors, but was unable to offer competitive conditions mainly due to the condition of access to the regasification and transportation infrastructure.

Source: Brasil Energia Magazine

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