By Brazil Stock Guide – Petrobras has signed its first small-scale LNG commercialization contract with Amazônica Energy, supplying 100,000 m³/day of liquefied natural gas from the Urucu Production Hub in Coari, Amazonas. The 10-year deal marks a milestone for Petrobras’ onshore operations, expanding gas monetization in the heart of the Amazon basin.
The contract covers roughly 3.5 million m³ per month, targeting isolated communities and industries across Northern Brazil still lacking pipeline infrastructure. The Urucu hub — Brazil’s largest onshore gas reserve — will anchor the project, connecting LNG supply to river transport routes and modular regasification units.
“This partnership reinforces our commitment to energy solutions that strengthen Brazil’s gas market,” said Álvaro Tupiassu, Petrobras’s Executive Manager for Gas & Energy, in an official statement.
New model for distributed gas supply
The initiative marks Petrobras’s entry into a flexible, distributed gas model aligned with Brazil’s new gas-market liberalization framework. For the company, the project diversifies cash-flow sources beyond deep-water fields and leverages existing onshore infrastructure. For Amazônica Energy, it represents a foothold in logistics and LNG distribution across the Amazon, potentially extending to thermal and industrial users.
The road ahead
Implementation will depend on the success of new liquefaction and regasification facilities and the ability to navigate complex Amazon logistics. If volumes ramp up, Urucu could serve as a template for replicable small-scale gas models across Brazil’s interior — bridging energy security, economic inclusion, and environmental goals.
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