KOGAS to Cooperate for Development of Brazil’s PECEM LNG Import Terminal

Korea Gas Corporation (KOGAS) signed a memorandum of understanding (MOU) to cooperate on developing a LNG terminal in Pecem, Brazil with the Brazilian state of Ceara at its Incheon LNG terminal on September 9.

Under the MOU, the state-run corporation will push ahead with a project to transform an existing Floating Storage Re-gasification unit (FSRU) at the port of Pecem in Brazil to an onshore LNG import terminal.

The MOU was made as the government of Ceara has strongly desired to cooperate with KOGAS, and as a result, KOGAS will carry out the project by forming a consortium with Korean private companies. 

The MOU contains the descriptions on several issues including mutual cooperation for developing a LNG import terminal, the state government’s support for gaining approval necessary for working on a project, creating a consultative body between agencies under the state government and consumers of natural gas, and establishing and managing a working group to push forward with the project.

KOGAS will conduct a feasibility study and make a final decision on whether to proceed the project based on the results.