Golar Power’s bid for Petrobras’s natural gas import terminal faces potential disqualification

According to sources with direct knowledge of the matter at hand, Golar Power Ltd has submitted the highest bid for a much sought after natural gas import terminal leased by Brazil’s state-run energy firm Petrobras. However Golar’s bid could potentially be thrown on on compliance-related grounds, warned sources.

In a securities filing on Thursday night, Petrobras confirmed receipt on an offer from Golar but said, it has given the bid a “high integrity risk grade, implying its disqualification”.

The bidding process will now enter a phase in which interested parties could launch appeals, said Petrobras.

Incidentally, the terminal and regasification facility was offered under a wider government effort to end the state oil company’s monopoly in natural gas imports and processing. The Bahia state terminal can process 20 million cubic meters per day of LNG and includes a 45 kilometer pipeline.

Twelve companies had bidded for the terminal, including local subsidiaries of Repsol SA, BP PLC, and Total SA.

Neither BP, Golar, Total, Petrobras, or Repsol immediately responded to requests for comments.

Earlier this week, the CEO of Hygo Energy Transition Ltd, a Golar LNG-Stonepeak venture, stepped down after being cited in a bribery investigation. Hygo Energy’s former executive, Eduardo Antonello, has yet to be charged.

Golar Power is investing in a number of projects in Brazil and is betting on an increased usage of LNG in power generation.

LNG could eventually become a substitute for diesel, said Golar.

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