Australia-listed Global Energy Ventures is looking to make an entry into the Brazilian gas market after striking a deal with local company GAIA Importacao e Exportacao.
GEV revealed Thursday it had appointed GAIA as its Brazilian country associate, with the pair to work together to identify, evaluate and develop prospective compressed natural gas (CNG) projects in Brazil.
GEV would retain 100% control of CNG project development but it also executed a marketing agreement with GAIA which would provide the latter with a success fee based on gas sales volumes transported by CNG Optimum ships.
“We are delighted to appoint GAIA as our Brazil country associate given their extensive experience and network in the Brazilian petroleum industry and also domestic government contacts,” GEV chief development officer Garry Triglavcanin said.
“It is critical to the success of our CNG projects that we have the right local partner to drive discussions with operators, gas buyers and regulatory agencies. We are really excited by the multiple Brazilian opportunities qualified for marine CNG to deliver offshore producers with a commercial solution for their associated gas production.”
GEV said Brazil was an ideal target for a marine CNG project given its significant offshore gas production in close proximity to a well-priced gas market.
It added that it had already held technical discussions with several “major oil and gas companies” operating in Brazil’s offshore Santos and Campos basins.
According to GEV, an estimated 30 million cubic metres of gas per day is being re-injected into the basins, while it claims marine CNG transportation of associated gas would offer a commercial alternative.
It added that it had already identified multiple target fields, both producing and in development, with a suitable gas specification and volume that make them candidates for gas supply and transport via marine CNG, with the majority within 300 kilometres of gas markets in Rio de Janeiro and Sao Paulo.