BG Group, Petrobras Shake on LNG Supply Deal
BG Group plc (BG) and Petroleo Brasileiro S.A. (Petrobras) have signed two liquefied natural gas (LNG) agreements. Under the agreements BG Group will supply the import terminals being built by Petrobras in Pecem (State of Ceara) and in Guanabara Bay (State of Rio de Janeiro).
The first agreement represents the beginning of Petrobras as a buyer of LNG in the international market. This agreement will provide the first LNG cargo ever to be delivered into Brazil and it will be used for the commissioning of the Pecem terminal in July 2008.
The second agreement will enable LNG to be supplied to either the Pecem or Guanabara terminals in Brazil. Petrobras will define, load-by-load, which terminal the LNG will be delivered to. This will be dependent on the natural gas demand in the local markets.
The execution of both agreements is consistent with Petrobras' strategy to establish a flexible, firm LNG supply that is based on the demand of the Brazilian market.
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