February 29, 2024 [S&P Global]- New Fortress Energy’ Gas Sul terminal in Brazil is set to commence its commissioning process and is expected to be operational in the first quarter of this year, the company said in a statement Feb. 27.
The Energos Winter, which New Fortress Energy subchartered from Petrobras for the terminal, docked at Sao Francisco do Sul port Feb. 25, according to the release.
Gas Sul is located in the southern Brazilian state of Santa Catarina. The ship arrived offshore Santa Catarina at the end of December, remaining there except for a two-day stint when it traveled to Paranagua bay, according to S&P Global Commodities at Sea data.
A Brazil-based source had previously said that New Fortress Energy lacked authorization from the Brazilian Navy to dock the ship in Sao Francisco do Sul due to a missing license.
Neither New Fortress Energy nor the Brazilian Navy responded to separate requests for comment at the time.
Brazil’s National Petroleum Institute, or ANP, granted New Fortress Energy an authorization to pre-operate the Gas Sul terminal on Feb. 9, valid through July 30, an ANP spokesperson told S&P Global Commodity Insights Feb. 23.
Sources had previously said the Energos Winter conducted a ship-to-ship loading operation with the Cobia LNG earlier this month as part of the terminal’s commissioning activities, but New Fortress has not confirmed the operation.
The LNG carrier did not make any other stops after being positioned next to the Energos Winter for a few days.
It is unclear if New Fortress has already secured gas supply contracts for Santa Catarina.
Two market sources said they were not familiar with any contract. An Atlantic-based trader said New Fortress only has very small contracts that would not be useful for an LNG cargo.
“I don’t expect them to deliver a cargo in Santa Catarina soon,” the trader said.
Platts, part of S&P Global Commodity Insights, assessed DES Brazil for deliveries 15 to 45 days forward at $7.435/MMBtu Feb. 27, up 26.6 cents on the day.
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