Norway’s Equinor ASA is set to develop a massive natural gas project offshore Brazil.
The company submitted a declaration of commerciality for the BM-C-33 concession in Brazil’s Campos Basin to oil and gas regulator Agência Nacional de Petróleo, Gás Natural e Biocombustíveis (ANP).
The $9 billion Raia Manta and Raia Pintada projects on the deepwater concession are expected to be natural gas-rich additions to Brazil’s energy mix once they are up and running in 2028.
“The developments have the potential to meet 15% of the total Brazilian gas demand when in production,” said Veronica Coelho, Equinor’s country manager in Brazil. “This will contribute to Brazil’s energy security and economic development, enabling significant new job opportunities at local level.”
Equinor is the operator with a 35% stake. Repsol Sinopec Brasil (35%) and Brazil’s state firm Petrobras (30%) round out the consortium.
The concession is located 200 kilometers, or 124 miles, from Rio de Janeiro, in water depths of some 2,900 meters (9,514 feet). Total recoverable volumes are estimated at around 1 billion boe.
One floating production storage and offloading unit (FPSO) capable of processing gas, oil and condensate will be used. There would be no need for further onshore processing. The FPSO will have a production capacity of 16 million m3/d with average exports of 14 million m3/d, Equinor said.
Natural gas would get to shore through a 200-kilometer pipeline from the FPSO to Cabiúnas, in the city of Macaé, in the state of Rio de Janeiro. Liquids would be offloaded by shuttle tankers.
It would be the first project in Brazil to treat gas offshore and connect to the national grid without further onshore processing. Combined cycle gas turbines on the FPSO would help keep the carbon intensity of the project on the lower end, Equinor said.
Growing Gas Market
Brazil’s natural gas market has undergone reforms in recent years as more of the fuel is being used locally and private sector players take on market share.
Thanks to its vast pre-salt offshore resources, oil and gas production keeps hitting records in Brazil. In July, Brazil produced 4.48 million boe/d, according to ANP. This broke June’s record of 4.32 million boe/d.
Natural gas accounted for 154 million m3/d of July’s total, up 14% over July 2022.
But only around 30% of this natural gas makes it to market, according to ANP. The vast majority is reinjected into the offshore fields or used on offshore platforms.
Government officials have stressed the need to get more natural gas to market. Petrobras is developing an 18 million m3/d pipeline, known as Rota 3, to bring more gas ashore. It is expected online next year.
Still, Brazil is expected to continue to need to import natural gas to meet rising, and seasonal demand. This year, LNG imports have plummeted in Brazil on the back of higher rainfall and ample hydroelectric generation. But during times of lower rainfall, Brazil can pull sizable amounts of liquefied natural gas from international markets to fuel its power plants.
