South Korea’s Kogas, the world’s second-largest buyer of LNG signed a memorandum of understanding for cooperation on the development of an LNG import terminal with the Ceara state in Brazil.
According to the memorandum of understanding, Kogas is set to work on a project that would see the existing infrastructure, the floating storage and regasification unit (FSRU) at the port of Pecem, into a land-based import LNG terminal, Reuters reports.
Kogas intends to form a consortium with South Korean private companies and do a feasibility study. Depending on the results of the study Kogas would proceed with the project.
The South Korean company recently also signed a memorandum of understanding with the state government of Yucatan in Mexico to construct an LNG import terminal and natural gas pipelines, with project costs expected to reach between US$1 billion to $1.5 billion.
Earlier in June, Petrobras of Brazil put up its two LNG import terminals in Rio de Janeiro and Ceará for sale.
The Pecém LNG import terminal in the Ceara state, has a daily sendout capacity of up to 7 million cubic meters of natural gas to the Guamaré-Pecém gas pipeline that mainly supplies the Ceará and Fortaleza thermal power plants.
LNG World News Staff