The partners will use their respective expertise to jointly evaluate and promote the development of a CNG to Power project
Australian compressed natural gas (CNG) developer Global Energy Ventures (GEV) has signed a joint development agreement (JDA) with Porto Norte Fluminense (PNF), and GEV’s Brazil country associate, GAIA, to assess the development of a CNG to Power project in Brazil.
As per the JDA, the partners will leverage their respective expertise to jointly evaluate and promote the development of a CNG to Power project, including CNG import facilities at the Port.
Offshore port and gas hub planned in municipality of São Francisco de Itabapoana
PNF is developing an offshore port and gas hub in the municipality of São Francisco de Itabapoana, State of Rio de Janeiro.
GEV said that the Port’s proposed offshore terminal would be ideal for CNG import and unloading, due to its fit for purpose design, offshore accessibility and dedicated facilities.
If feasible, the partners would progress to definitive and binding agreements with operations planned to commence in 2025.
GEV Brazil project manager Luke Velterop said: “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.
“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.”
In advance of Brazilian power auctions scheduled in 2021, the JDA partners plan to assess the cost competitiveness of specific gas fields for a CNG to Power project.