Petrobras Weighs Offshore LNG Export Plans Amid Brazil's Gas Market Reforms

Petrobras, Brazil's state-owned oil company, is considering investing in offshore liquefied natural gas (LNG) facilities to export part of its domestic gas production. This move comes as the country's Gas Release program, part of the New Gas Law, advances. The initiative would require Petrobras to sell a portion of its natural gas output to private companies, increasing competition.

The Brazilian company has been expanding its presence in Colombia, where it recently announced its third natural gas discovery. Petrobras operates in Colombia's GUA-OFF-0 Block, holding a 44.44% stake alongside state-owned Ecopetrol. The project is expected to require $1.2 billion during the exploration phase and $2.9 billion for field development.

According to sources familiar with the matter, Petrobras is studying the feasibility of investing in offshore LNG facilities as a way to export gas if the Gas Release program is implemented. This would allow the company to avoid selling part of its domestic output to private rivals. The proposal is set to be discussed at the National Agency of Petroleum, Natural Gas and Biofuels (ANP) board meeting on Friday.