SAO PAULO — Brazilian energy company Eneva SA said on Wednesday it had signed a contract to supply liquefied natural gas (LNG) to pulpmaker Suzano starting in 2024.
Eneva said it will invest around 530 million reais ($109.87 million) to install a natural gas liquefaction unit at its Parnaiba Basin complex in the northern Brazilian state of Maranhao, using reserves from its nearby gas fields.
The LNG unit is expected to have installed capacity of 300,000 cubic meters per day.
Most of the LNG from the unit will be directed to Suzano’s industrial facilities, located in the same state, but also to “new potential customers in the region,” according to a securities filing.
The contract is valid for 10 years from the start of commercial supply, which is scheduled for the first half of 2024.
Eneva called the deal “a milestone” for its strategy to expand its natural gas monetization, which includes commercialization of small scale LNG to third parties. ($1 = 4.8238 reais) (Reporting by Carolina Pulice and Peter Frontini; Editing by Christian Plumb)
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