Petrobras and Amazônica Energy Sign First Small-Scale LNG Contract from Urucu Pole
Petrobras and Amazônica Energy have signed the first contract for the sale of natural gas from the Urucu Pole for small-scale liquefied natural gas (LNG) commercialization. The agreement inaugurates a new stage in the monetization of reserves from the Solimões Sedimentary Basin and marks an advance for the natural gas market in Amazonas state.
Contract Details and Timeline
Gas supply is scheduled to begin in February 2028, with an initial contracted volume of 100,000 cubic meters per day and a validity of 10 years, with the possibility of expansion as the project evolves. The objective is to bring natural gas to locations in the North Region that face logistical restrictions in accessing the input, creating distribution solutions aimed at expanding the supply of this fuel in remote areas of the Brazilian Amazon.
The initiative contributes to emission reductions and to a more efficient use of the region's energy resources. It reinforces Petrobras' role as an agent of energy and regional development, consolidating natural gas as a vector of integration and efficiency in the Brazilian energy matrix.
Investment and Infrastructure Development
The project provides for investments by Amazônica Energy in liquefaction, transport, and LNG regasification units, as well as expanding the transport delivery point. This will enable regional development by generating jobs and income, reducing production costs, and stimulating the local productive chain, while strengthening the Brazilian natural gas market.
The implementation of the LNG Terminal allows the supply of liquefied natural gas for industries, thermoelectric plants, CNG in vehicle fleets, and logistics centers distributed along road and river corridors, with positive impacts on job generation, investment attraction, and strengthening of the regional economy.
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Executive Perspectives
Álvaro Tupiassu, Executive Manager of Gas and Energy at Petrobras, stated that the partnership with Amazônica Energy reinforces the company's commitment to solutions that boost the national energy sector. The contract expands access to natural gas in the North Region, with new delivery modalities and innovative solutions that seek to foster the local economy, generating benefits in the region and for the country's gas market.
Marcelo Araújo, CEO of Amazônica Energy, described the strategic partnership with Petrobras as extremely important for developing the project, which aims to diversify the energy matrix in the North Region with a focus on sustainability and a lower carbon footprint. Having Petrobras as a partner enhances their efforts and adds to the initiative of major national and international partners who actively collaborate with Amazônica Energy in this endeavor.
Urucu Operations Background
Since 1988, Petrobras has been producing oil and gas safely and sustainably in the region. The Urucu Pole is Brazil's third-largest natural gas producer, with an average production of 5.1 million cubic meters per day, which supplies 65% of the electricity generation in Manaus and five other municipalities in Amazonas.
Additionally, cooking gas (LPG), with an average of 80,000 cylinders daily, supplies all states in the North and part of the Northeast of the country. The operation generates approximately 20,000 direct and indirect jobs, including approximately 1,000 workers in the region, who commute daily from Manaus and Carauari mainly to work at the unit.
Over the years, Petrobras has developed more than 1.5 million seedlings of native species for reforestation in the region, with currently 98% of its concession areas remaining preserved to ensure environmental sustainability. All waste generated by Urucu operations is properly disposed of, and the unit is self-sufficient in energy, using locally produced natural gas, which significantly reduces greenhouse gas emissions.
Also Read: YTL PowerSeraya and BAC Renewable Energy Sign Agreement to Supply Asia's First Physical Bio-LNG
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