Brazil More Than Doubles LNG Import Capacity Since 2020 to Bolster Energy Security

Significant Expansion of LNG Infrastructure

Brazil has substantially increased its liquefied natural gas (LNG) regasification infrastructure since 2020, effectively more than doubling its import capacity. According to the U.S. Energy Information Administration (EIA), the country's LNG import capacity surged from 2.5 billion cubic feet per day (Bcf/d) in 2020 to 5.1 Bcf/d as of August 2025. This strategic expansion is a key component of Brazil's efforts to diversify its energy mix and enhance the reliability of its power system. Prior to 2020, Brazil operated three LNG terminals—Pecém FSRU, Guanabara Bay FSRU, and Bahia FSRU—with a combined import capacity of 17.5 million tonnes per annum (mtpa).

Key Projects Drive Capacity Growth

The rapid growth in capacity has been fueled by the commissioning of several new terminals and the expansion of existing facilities. In 2024 alone, three new terminals contributed an estimated 1.74 Bcf/d of capacity:

• New Fortress Energy's Barcarena Floating Storage and Regasification Unit (FSRU), adding 0.75 Bcf/d.
• Terminal Gás Sul FSRU, contributing 0.50 Bcf/d.
• Compass Gás & Energia's Cosan terminal, also adding 0.50 Bcf/d.

Earlier facilities that came online since 2020 include the Sergipe FSRU and Porto do Açu FSRU (each with 5.6 mtpa), and the Sepetiba Bay FSRU (2.7 mtpa) in 2022. Looking ahead, the Suape FSRU terminal in Pernambuco is currently under development and is projected to add 0.7 Bcf/d upon its scheduled completion in early 2026. Brazil is recognized as the largest LNG importer in the Latin America and Caribbean region, with plans for the world's fourth-largest buildout of LNG import capacity, totaling 36.5 mtpa.

Strategic Rationale and Regulatory Framework

This significant expansion is underpinned by an 'integrated LNG-to-power' strategy, where new LNG import terminals are paired with large natural gas-fired power plants. For instance, the Barcarena terminal is linked to the 2.2-gigawatt (GW) Novo Tempo Barcarena power complex, and the Port of Açu LNG terminal is associated with the 1.7 GW GNA II natural gas-fired power plant, which commenced operations in May. The GNA I plant, with 1.338 GW, began commercial operation in September 2021. An additional 7.5 GW of gas-fired power capacity is under development to utilize LNG from terminals that have come online since 2020.

Regulatory reforms have played a crucial role in accelerating this growth. Federal Law 14,182/2021, which included the privatization of Eletrobras, mandated 8 GW of new regionalized gas power-plant contracts. Furthermore, the New Gas Law (14,134/2021) dismantled Petrobras's exclusive control over gas production, transportation, and distribution, thereby fostering independent terminal development and third-party access to gas injection infrastructure. These measures aim to strengthen a power grid heavily reliant on renewable sources, with approximately 80% of Brazil's electricity generated from hydropower, wind, and solar. LNG serves as a critical backup, particularly during droughts when hydropower generation is vulnerable, as evidenced by reservoir levels falling to 29% of capacity in 2024.

Market Impact and Future Outlook

The expanded LNG capacity also serves regions without pipeline access, enhancing energy distribution across the country. In 2024, the United States supplied 72% of Brazil's LNG imports, complementing piped natural gas imports from Bolivia and Argentina via the GASBOL pipeline. While Brazil's domestic gas production reached 5.4 Bcf/d in 2024, a significant portion (54%) is reinjected to maintain reservoir pressure, limiting its availability for consumption. The diversification of gas supply, moving away from a historical reliance on Bolivian imports, underscores Brazil's commitment to energy security and a more resilient energy future.