Petrobras announced that it opened bidding process for lease of its LNG regasification terminal and associated facilities. The terminal is located in the northeast of Bahia, according to S&P Global Platts.

The company said that this step came as it continues to diversify away from midstream and downstream oil and gas operations in Brazil. Also, it came  within its strategy to improve its capital allocation and create favorable environment for investors in natural gas sector.

The lease of this terminal considered as a significant step in encouraging competition in Brazil’s gas market. It can give potential importers access to northeast Brazil’s largest municipal gas market thanks to its proximity with heavily populated neighboring states.

The terminal’s capacity can take up to 700 million cubic feet per day (mmcf/d) of natural gas and it is connected to two onshore delivery points in Salvador City.