Paper: BG Group Eyes Petrobras JV for Re-gasification Projects

Britain's BG Group (NYSE: BRG) is interested in forming a joint venture with Brazil's federal energy company Petrobras (NYSE: PBR) to build liquefied natural gas (LNG) re-gasification terminals in Brazil, Gazeta Mercantil reported, citing an unnamed BG Group source.

Other companies have expressed interest in the terminals, including French utility group Suez, which has been in touch with Petrobras officials regarding the projects, according to the paper.

A BG official told BNamericas that, although the company is an important LNG player worldwide, it could not confirm the Gazeta Mercantil story.

Brazil's mines and energy minister Silas Rondeau announced plans earlier this year to build 2-3 re-gasification terminals.

The first two plants would start operations by 2011. One would have capacity to produce 14 million cubic meters of gas a day (Mm3/d) and would be in Brazil's southeastern region.

The second terminal would be built in the country's northeastern region and would have 6Mm3/d of capacity.

Petrobras decided to build the re-gasification units following Bolivia's May 1 nationalization decree for the hydrocarbons industry, which put in doubt the possibility of increasing Bolivian imports past 30Mm3/d in the medium term.

Brazil's natural gas consumption will top 100Mm3/d in 2011 from its current level of 42Mm3/d, according to Petrobras projections.

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