Brazil’s state oil company is seeking to secure a steady supply of liquefied natural gas from Qatar in a bid to curb import costs for the super-chilled fuel, its chief executive said at India Energy Week.
“We want to try to establish a long-term relationship with Qatar,” said Jean Paul Prates, a former senator handpicked by President Luiz Inacio Lula da Silva, who has helmed Petroleo Brasileiro SA since January 2023. Petrobras executives will go to Qatar later this month to propose a long-term LNG contract with a steady price, like that linked to Brent oil, he said.
Such a deal could help curb Brazil’s dependence on the volatile — and sometimes prohibitively expensive — spot market, where Petrobras gets roughly all of its LNG. Prates is also interested in developing the country’s domestic gas resources.
Petrobras has come under pressure from the government to be less generous with dividends and do more to curb inflation, boost Brazil’s economy and create jobs.
Qatar is offering lower prices to attract importers to its massive gas expansion project — which will lift exports by about two-thirds through 2027. The Middle Eastern nation has only sold about half of the extra supply so far, according to BloombergNEF. (February 7, 2024)
QATAR - BRAZIL - LNG - SUPPLIES - IMPORTS - EXPORTS