Page 4 - LatAmOil Week 02 2022

COMMENTAR
LatAmOil COMMENTARY Y LatAmOil

(Photo: Petrobras)

What drove LNG imports

to record highs in Brazil?

Efforts to mitigate the impact of drought have made LNG a crucial component in Brazil’s energy mix

EARLIER this week, Brazil’s national oil com- of ship-to-ship (STS) transfers, the company
pany (NOC) Petrobras said in a statement that said. Notably, in a statement released about
WHAT: it had seen LNG imports reach record highs last two months ago, the company put the number
Petrobras says LNG year. of such operations at 104 during the period
regasification volumes In 2021, the statement noted, Petrobras’ five between January 1, 2021 and November 4, 2021,
hit an all-time high above existing regasification terminals took delivery up from the record high of 103 recorded during
40 mcm per day late last of the equivalent of 23mn cubic metres per day the full year of 2014.
June. of LNG on average. This marked a rise of about
200% on the previous year’s average of 20 mcm LNG’s key role
WHY: per day and about 15% higher than the previous These numbers are important. They show just
Gas has become Brazil’s record of 20 mcm per day recorded in 2014, it how important LNG has become for Brazil
preferred alternative fuel
at a time of diminished said. in the face of a drought that has restricted the
hydropower capacity, and The NOC indicated that daily delivery vol- flow of the rivers that usually keep the country’s
LNG imports are needed umes had been particularly high around mid- hydroelectric power plants (HPPs) running.
to cover rising demand. year. On June 28 alone, it reported, the country This is no trifling matter, given that these HPPs,
took delivery of 42 mcm of regasified LNG. This which have a combined capacity of 114 GW,
WHAT NEXT: was enough to cover nearly 38.4% of total con- usually provide two thirds of Brazil’s electricity
The energy minister’s sumption, which amounted to 109.4 mcm on supplies.
hopes for launching LNG that date. In short, after inadequate rainfall deprived the
imports in five to eight Overall, Petrobras added, LNG accounted hydropower sector of water in late 2020 and
years may be premature. for about 30% of all the gas consumed in Brazil early 2021, the country found itself in need of
last year. It also generated a record-high number another source of energy

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