Petrobras approves sale of Liquigás

State-owned Petrobras’s board of directors has given a green light for the sale of LPG distribution unit, Liquigás Distribuidora, to Companhia Ultragaz, a subsidiary of Ultrapar Participações. 

According to the company’s statement, the sale is worth R$2.8 billion (Approx: US$825 million), and is part of Petrobras’ 2015-2016 divestment plan as it looks to optimize its business portfolio focusing on oil and gas and withdrawing entirely from LPG distribution.

However, in June, Petrobras put its two LNG terminals for sale as well. It began a bidding process to sell its liquefied natural gas terminals in Rio de Janeiro and Ceará, along with the thermoelectric power plants associated with these terminals.

The daily regasification capacity is of 20 million cubic meters at the Rio de Janeiro terminal and 7 million cubic meters at the Ceará terminal.

The company noted then that it was in the final stages of the negotiations with Houston-based LNG player Cheniere, and Engie of France, however no deals have been signed.

Reuters reported in September that the sale of the two terminals has not been progressing according to plans, citing the company’s CEO Pedro Parente as saying that regulatory issues are getting in the way of the sale.

It has also been reported that Petrobras could be suspending operations at the LNG regasification terminal in Ceara state and the connected thermoelectric plant as the Ceara state infrastructure secretariat intends to repurpose the area where Petrobras’ LNG terminal is located.

South Korea’s major LNG importer signed a memorandum of understanding with the Ceara state in Brazil at the beginning of September, under which it would turn the existing infrastructure at the port of Pecem, into a land-based import LNG terminal.

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LNG World News Staff