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Market Chatter: Brazil's Petrobras Mulls LNG Exports as Asian Demand Grows

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Brazil's state-controlled oil company Petrobras (PBR) is considering starting exports of liquefied natural gas to Asia, with demand strong since the loss of supply from Qatar in the midst of the US-Iran war, Bloomberg reported on Thursday.

Chief Executive Officer Magda Chambriard said during a joint press briefing in Singapore with shipbuilder Seatrium, based there, that Petrobras has been in talks with the company about liquefaction and shipping of its deepwater gas resources.

She did not offer a timeline for the start of any LNG shipments, the article said, but the lead time would likely be significant considering the need to first build liquefaction capacity. Chambriard said that Asia was already the biggest offtaker of Petrobras exported crude.

Bloomberg noted that despite Brazil's high ranking among South American countries for natural gas production volumes, more than half is re-injected into oil wells to increase production of crude.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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