Brazilian state-run oil company Petrobras may have to start a new bidding process for the lease of a liquefied natural gas (LNG) regasification terminal in Bahia, Kallanish Energy reports.

The company said late last week it opened bids from three companies: bp, Compass Gas e Energia and Golar Power. Only one commercial proposal was received, but it was then disqualified.

The TR-BA lease process consists of a 20 million cubic meters per day (Mmcm/d) terminal and associated pipeline in northern Brazil. It doesn’t include a floating storage and regasification unit (FSRU) vessel.

bp requested to postpone the opening of commercial proposals to eventually solve “pending issues,” while Compass presented a letter of decline of the commercial proposal.

Petrobras received a commercial proposal from Golar Power, a joint venture between Golar LNG and Stonepeak Infrastructure, currently known as Hygo Energy Transition.

However, Petrobras’ integrity risk assessment disqualified Golar Power from the competition due to corruption allegations against Golar Power’s CEO Eduardo Antonello. The executive, who denies any wrongdoing, took a leave of absence from the company late last month.

“The bidding process enters its recursal phase,” Petrobras said in a statement. “If the contest is closed without valid proposals having been obtained by Petrobras, the company will carry out a new bidding process.”

Petrobras didn’t disclose details for a new timeline, while Golar Power said it would appeal the decision.

This post appeared first on Kallanish Energy News.