Drought conditions in Brazil trigger LNG buying

Brazil’s Southeast-Central West region was hit by drought that has Petrobras on their toes seeking near-term LNG cargoes to add to the country’s power supply. 

Sources said that Petrobras recently lifted an FOB cargo from Qatar for an unknown price, loading it onboard the 157,000 cbm Wilpride LNG carrier in the Ras Laffan port. The vessel is due to arrive at the Bay of All Saints terminal in Salvador, Bahia by late August, reports Platts.

It is reported that the company is looking for similar cargoes to be delivered in September, October and even November, before the start of the rainy season.

Purchases were prompted by the low reservoir levels of 34.36% in the critical Southeast-Central West region, that serves nearly 50% of Brasil’s population with energy created from hydropower.

LNG World News Staff, August 12, 2014; Image: Awilco