Petrobras to close gas plant after lease talks fail

Brazilian oil firm Petrobras reported on May 11 that it would start decommissioning the TermoCamacari thermal power plant in Brazil's Bahia state, after talks with local firm Proquigel Quimica on leasing the facility ended without success.

The gas-fired TermoCamacari station has a capacity of 120 MW, but it has lacked a power purchase contract since January 2018 and provides electricity as and when necessary, under the direction of Brazil's National Electric System Operator. Its concession was revoked by the Brazilian Electricity Power Regulator in March.

Petrobras had been in talks on leasing the facility to Proquigel Quimica to supply power to the Fafen fertiliser plant in Sergipe, which also receives gas feedstock supplies from Petrobras. The Brazilian oil firm has been seeking ways of better monetising the power plant for several years. Negotiations on the facility's sale to France's Total ended unsuccessfully in 2016.