In News

Australia’s Global Energy Ventures (GEV) is teaming up with a pair of Brazilian companies to explore the development of a compressed natural gas (CNG) to power project, powered by gas from the country’s prolific pre-salt plays.

GEV confirmed Monday it had entered a joint development agreement with Porto Norte Fluminense (PNF) and GAIA to evaluate and promote the development of the project.

The proposed project would also include import facilities at PNF’s North Fluminense Port in Sao Francisco de Itabapoana, in the north of Rio de Janeiro state.

The port covers 126 hectares onshore, spanning across 1500 metres of coastal frontage, and lies within 250 nautical miles from multiple gas supply targets in the Santos and Campos basins.

PNF is also expected to receive environmental permits next year for industrial facilities, including a natural gas processing plant and two 1.75-gigawatt thermoelectric power plants.

“CNG Optimum ships will bring a cost-effective transportation solution for the abundant gas supply off the Brazilian coast to our port facilities and will enable the creation of a gas hub in north of Rio de Janeiro attracting several industries, bringing competitiveness and reducing the gas price to the Brazilian market and the electricity to be produced in our power plants,” PNF chief executive Rogerio Sacchi said.

GEV claims PNF’s proposed offshore terminal would be well suited for CNG import and unloading, due to its fit for purpose design, dedicated facilities and offshore accessibility.

“There are several major oil and gas field developments with a suitable export gas composition located within a half day sail from Porto Norte Fluminense. While gas reinjection can be required for reservoir management, operators are having to consider reinjection of the entire gas stream, due to the lack of midstream infrastructure and gas market challenges,” GEV’s Brazil project manager Luke Velterop said.

“An integrated CNG to Power project would solve both of these issues. CNG Optimum and PNF can unlock value in Pre-Salt natural gas reserves by offering operators a fit for purpose solution with the CNG shipping fleet, port terminal and plant facilities specifically sized to the gas production and market demand.

“The JDA partners envision a CNG to Power project with a long-term Pre-Salt gas price would be competitive to power plants using imported LNG as fuel. We expect additional project partners will be quick to support the concept and assist in its development.”

GEV claims that the proposed project would provide Brazilian operators with the potential to monetise their gas reserves that would otherwise be re-injected into the reservoir by supplementing the estimated 10 billion – 20 billion cubic metre annual shortfall in domestic gas demand.

If the project is deemed technical and commercially viable, GEV said it would work with PNF, and its local country associate GAIA, to bring in additional partners with power plant expertise to progress to definitive and binding agreements.


Recent Posts