Page 10 - LatAmOil Week 07 2022

LatAmOil BRAZIL LatAmOil

Domestic gas production covered more than 2021. Nevertheless, there is still some distance
half of the total, or 51 mcm per day, and Brazil to cover before full liberalisation is achieved.
also imported the equivalent of 46 mcm per day From a de jure perspective, Brazilian author-
of gas by pipeline from Bolivia and by tanker in ities have taken the decision to postpone imple-
the form of LNG. mentation of certain measures, including curbs
Brazil’s government formally the New Gas on Petrobras’ ability to import LNG.
Law, which incorporates measures that allow But from a de facto standpoint, state-con-
competition and break up the monopoly previ- trolled Petrobras still accounted for approxi-
ously enjoyed by Petrobras into the legal regime mately 90% of the country’s gas production as of
that governs the national gas market, in April the end of 2021. ™

Brazilian gas execs say lack of access

to infrastructure is hampering reforms

EXECUTIVES from several Brazilian compa- infrastructure facilities in the country, as well
nies said during a webinar last week that the as the biggest supplier (and the supplier of first
government’s efforts to reform the natural gas resort for many buyers).
sector were running into challenges because of According to João Vitor Moreira, director
questions about access to pipelines and process- for regulations and new business at the inde-
ing facilities. pendent company PetroReconcavo, current
Currently, the South American nation does conditions make changes in regulations a high
not have a large enough network of pipelines priority. “It’s an important point and, perhaps,
and processing facilities to support this initiative one of the most critical for us now,” S&P Global
properly, they said. Platts quoted him as saying.
Under the New Gas Law adopted last April, PetroReconcavo is one of several companies
which introduced new rules designed to meet emerging as an alternative gas supplier to Petro-
rising demand and bring prices down by fos- bras. The onshore producer has secured several
tering competition, Brazil is supposed to be gas-sector assets from Petrobras, including an
opening up the gas market to independent and export pipeline and processing plant at Gua-
alternative producers. So far, though, it has been mare in Rio Grande do Norte State. Under the
slow to implement all the new rules necessary to terms of a contract, PetroReconcavo started
accommodate new market entrants. delivery of 236,000 cubic metres per day with
Meanwhile, state-owned Petrobras Companhia Potiguar de Gás (Potigás) on Jan-
has remained the dominant owner of gas uary 1, 2022.

Brazilian gas pipeline networks (Image: EPE)

P10 www. NEWSBASE .com Week 07 17•February•2022