Petrobras disqualifies Excelerate's bid for LNG lease

Brazilian energy company Petrobras said June 21 that US-based Excelerate Energy was disqualified for an LNG lease for not following the rules of the tender.

Petroloes Brasiliero, as the Brazilian company is formally known, said Excelerate was present during a public session related to the leasing of Brazil’s Bahia LNG regasification terminal.

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“The leasing is aligned with the company's strategy of improving its capital allocation and building a favourable environment for new investors to enter the natural gas sector,” the Brazilian company said.

But while Excelerate presented all the necessary information for acceptance, Petrobras disqualified the bid because the US company had not followed the rules of the tender.

Pre-qualified companies were invited in April to bid for leases of the facility’s island pier that can accommodate berthing of a floating storage and regasification unit (FSRU). Included in the lease is midstream infrastructure connected to two delivery points at the LNG terminal.

Among the pre-qualified companies were Repsol LNG, BP Energy do Brasil, Compass gas e Energia, Total Gas & Eletricidade do Brasil, Eneva, Shell, Excelerate Energy and BG do Brasil.

Petrobras has struck out so far with its efforts to draw bidders to the import terminal, attracting no interest during its last try in February.

The Bahia terminal can import up to 700mn ft³/day, or 7.2bn m³/yr, of gas and is connected to two onshore delivery points via a 45-km pipeline. The leasing contract does not cover the terminal's floating storage and regasification unit, but extends to all other infrastructure, including power generation and supply equipment at an onshore gas-fired electricity station at the Madre de Deus Waterway terminal.

Excelerate had no immediate comment on the decision from Petrobras.