Petrobras, Sonatrach eye LNG accord

Brazil's state-run Petroleo Brasileiro SA (Petrobras) and Algeria's Sonatrach have reached agreement on a memorandum of understanding to study an LNG partnership.

April 3, 2007

Eric Watkins
Senior Correspondent

LOS ANGELES, Apr. 3 – Brazil's state-run Petroleo Brasileiro SA (Petrobras) and Algeria's Sonatrach have reached agreement on a memorandum of understanding to study an LNG partnership.

The partnership is aimed in part at supplying planned regasification terminals at Pacém and Guanabara Bay where, by 2008, Petrobras plans to have two LNG vessels in place to regasify 20 million cu m/day of LNG.

The draft agreement also foresees exploration and production cooperation studies for onshore and offshore blocks in Brazil, Algeria, and other countries of mutual interest, Petrobras said.

It said the agreement is scheduled to be signed in Algeria in April, when the firms also plan to sign an LNG supply agreement.

Contact Eric Watkins at [email protected].