Strong interest shown in Brazilian power supply auction

Brazilian government’s power supply auction scheduled for February of 2016 attracted interest of 36 natural gas-fired thermoelectric projects. 

The 36 projects have a total installed capacity of 18,741 MW, and the government will award the long-term power purchase deals in January 2021.

Mauricio Tomalquim, chief executive at Epe, Brazilian energy research company running the tender, told Argus that a large proportion of gas projects will use imported liquefied natural gas.

The projects would play in hand to Petronas’ efforts to monetize its LNG regasification terminals that have recently been underutilized. With the replenishment of the hydroelectric reservoirs, following

With the replenishment of the hydroelectric reservoirs, following draughts during the last year, Petrobras’ Guanabara LNG regasification terminal remained idle last month. Bahia LNG terminal received a bit over 300 tons of LNG in September, while Pecem regasification terminal received just over 117 tons,  Argus reported.

Participants in the auction are required to present 15-year gas supply deals also indicating the gas price index selected for the projects.

The ceiling price for each type of power will be revealed by the government in early 2016.

LNG World News Staff; Image: Petrobras