Cosan Unit Edge Launches Off-Grid LNG Supply in Brazil with 8-Year Deal

Cosan’s Edge has begun supplying LNG to customers outside Brazil’s pipeline network under an eight-year deal, signaling growing momentum for off-grid gas infrastructure in underserved regions.

(Reuters) — Edge, a unit of Brazilian conglomerate Cosan, has begun to supply liquefied natural gas to a customer outside the gas pipeline network, its chief executive told Reuters, adding it hoped to sign other similar "off-grid" contacts soon.

The first such deal is an eight-year LNG supply agreement of 100,000 cubic meters per day to a plant owned by pulp company LD Celulose, the companies said.

"We already have very advanced discussions with other clients," Edge's Chief Executive Demetrio Magalhaes said in an interview.

The infrastructure set up for the deal with LD Celulose allows a future increase in volumes without the need for new investments, he added.

Companies such as Edge and Eneva have been seeking "off-grid" gas supply contracts to try to find demand in Brazilian regions that do not have a gas pipeline network.