Page 10 - LatAmOil Week 43 2021

LatAmOil BRAZIL LatAmOil

Petrobras concerned about its

ability to meet fuel demand

BRAZIL’S national oil company (NOC) Petro- October, up from 79% during the first half of
bras has warned that it will not be able to meet 2021.
demand from fuel distributors next month, rais- The growing concern about petroleum prod-
ing concerns over potential supply shortages in uct supplies is occurring against the backdrop of
the Latin American country. rising fuel prices on Brazil’s domestic fuel mar-
The state-owned firm expressed concern last ket. The increase appears to be driven by the
week about “atypical demand” from distribu- uptick in global crude oil prices and the weak-
tors, saying that buyers were trying to acquire ening of Brazil’s national currency. President Jair
more petroleum products than its refineries Bolsonaro has said, though, that his government
were able to produce, according to a Reuters will not compel Petrobras to reduce prices.
report. Diesel demand among fuel distributors “Some want me to interfere in the price,”
is up by 20% on the level reported in November Bolsonaro told reporters on October 24, during
2019, while gasoline demand has risen by 10% an event that was broadcast live on Facebook.
over the same period, the NOC noted. “We’ve done this in the past and it didn’t turn
Petrobras is not the only party to raise the out well.” ™
issue. Brasilcom, the Brazilian fuel distributors’
association, warned some of its affiliated com-
panies earlier this month about the possibility of
unilateral cuts in orders for gasoline and diesel,
Reuters said. The association also pointed out
that local firms were not in a position to make
up their deficits by purchasing fuel abroad, since
prices on international markets were far higher
than Brazilian domestic ones.
According to Reuters, Petrobras has asserted
that it can still fulfil its contracts with fuel dis-
tributors in line with the previously agreed
terms and schedules. It also said last week that
it was still trying to maximise production and
deliveries and reported that its refineries had
been operating at 90% of design capacity in Petrobras says it is facing “atypical demand” from fuel distributors (File Photo)

ARGENTINA
Argentina launches new tender

to seek 5.5 mcm per day of gas

THE government of Argentina has launched a local reports. It is seeking extra supplies in
new round of its so-called Gas Plan incentive advance of winter, the season when it usually
scheme as it tries to boost domestic natural gas bolsters domestic supplies with LNG imports
output and reduce imports. and gas piped in from neighbouring Bolivia. (In
The Energy Secretariat will accept bids until the warmer months, by contrast, it tends to have
November 2 and announce the winners on excess supply and typically exports surplus vol-
November 10, officials in Buenos Aires said last umes by pipeline to Chile, Brazil and Uruguay.)
week. Buenos Aires unveiled the Gas Plan incentive
Argentina is trying to secure the equivalent scheme in October 2020 as part of Plan Gas 4, a
of 5.5mn cubic metres per day of gas between wider-ranging initiative designed to support the
May 2022 and December 2024, according to domestic gas sector.

P10 www. NEWSBASE .com Week 43 28•October•2021