U.S-based LNG company Excelerate Energy and Brazil’s Petrobras have sealed a 10-year charter deal for the floating storage and regasification unit FSRU Sequoia.
The agreement, effective January 1, 2024, will see the Texas-headquartered Excelerate continue to deploy the Sequoia to provide regasification services in Brazil, primarily at the Bahia Regasification Terminal (TR-BA) in Salvador, Bahia.
Excelerate did not provide any additional information regarding the deal.
Since 2012, Excelerate has provided regasification services in Brazil at Petrobras’s LNG import terminals. In addition to the Sequoia, Excelerate’s FSRU Experience is currently providing regasification services in Brazil.
According to the firm, maintaining a continued presence in the Brazilian market is a “fundamental part of Excelerate’s strategic position as a reliable backstop to the country’s energy system for which intermittent renewable energy contributes approximately 85 percent.”
The deal also expands the company’s core regasification business, which allows for increased visibility to predictable near-term and long-term earnings and cash flows.
Steven Kobos, president and chief executive of Excelerate, said: “Brazil is an excellent market. This Agreement is an important step in furthering Excelerate’s long-term sustainable growth plan in South America.”
“Deploying the Sequoia for 10 more years will position Excelerate well to support Brazil’s efforts to strengthen its energy security. We have been a reliable partner to Petrobras for more than a decade, and we are committed to maintaining that partnership and supporting the energy transition for all Brazilians,” Kobos added.
