Petrobras (PBR) and Excelerate Energy Sign 10-Year FSRU Charter
Petrobras PBR, Brazil's state-owned oil and gas company, and Excelerate Energy EE, a U.S.-based floating liquefied natural gas (LNG) infrastructure provider, signed a 10-year charter agreement for the floating storage and regasification unit (“FSRU”) Sequoia. The agreement will be effect from Jan 1, 2024, and will see Sequoia deployed to provide regasification services in Brazil, primarily at the Bahia Regasification Terminal (TR-BA) in Salvador, Bahia.
Sequoia is a 173,400-cubic meter FSRU that was delivered to Excelerate Energy in June 2020. It is one of the most technologically advanced FSRUs in the world and is capable of regasifying up to 15 million cubic meters of LNG per day.
Benefits of the 10-Year Charter Agreement
The 10-year charter agreement between Petrobras and Excelerate Energy will be beneficial for both parties as well as Brazil.
For Petrobras, the agreement provides a long-term and secure source of regasification. This will help PBR meet the growing demand for LNG in Brazil and ensure a reliable supply of natural gas to meet the country’s power generation and industrial needs.
For Excelerate Energy, the agreement provides a long-term stream of revenues and helps secure its position as a leading provider of LNG infrastructure in Brazil. The agreement also allows EE to deploy Sequoia to a key market with a strong demand for LNG.
For Brazil, the agreement will help ensure a secure and reliable supply of natural gas. This is essential for the country's economic growth and development.
Petrobras' Commitment to Energy Transition
The 10-year charter agreement is a clear signal of Petrobras' commitment to energy transition. Petrobras is investing heavily in renewable energy and LNG, and working to reduce its carbon footprint.
The Sequoia FSRU will play a key role in Petrobras' energy transition strategy. It will help reduce Brazil’s reliance on oil and increase its dependence on cleaner-burning natural gas.
Other Industry Players
Murphy Oil Corporation (MUR) announced that its subsidiary closed the previously announced divestment of certain non-core operated Kaybob Duvernay assets and all of its non-operated Placid Montney assets in Canada. It received cash proceeds of nearly $104 million (nearly C$141 million).
Murphy Oil is a strong cash flow generator that will enable it to continue returning value to shareholders.
TC Energy (TRP) has sold a 40% stake in two of its natural gas pipelines to GIP for C$5.2 billion. This is part of TRP's plan to raise capital and reduce debt.
The sale is expected to close in the fourth quarter of 2023. The proceeds from the sale will be used to fund other projects, including the Coastal GasLink pipeline.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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