Page 16 - LatAmOil Week 25

LatAmOil BRAZIL LatAmOil

Petrobras ready for new gasoline specs

BRAZIL’S national oil company (NOC) Petro- new engine technologies, are outlined in ANP’s
bras has declared that it is ready to comply with Declaration 807/20. That document states that
the new regulations governing gasoline quality all regular gasoline sold in Brazil must have a
that will take effect later this year. minimum octane number rating of 92 research
Anelise Lara, the company’s director of refin- octane number (RON) and a minimum spe-
ing and natural gas, said that Petrobras’ refin- cific mass of 715 kg per cubic metre, regard-
eries were capable of producing gasoline that less of whether it is domestically produced or
complied with the new specifications that the imported.
National Agency of Petroleum, Natural Gas and Lara went on to say during the broadcast that
Biofuels (ANP) will introduce in August 2020. Petrobras hoped to begin turning out renewable
“Petrobras is already ready to produce this new paraffinic diesel, known as HVO, at the Presi-
gasoline,” she declared during a live YouTube dente Getúlio Vargas (REPAR) refinery in the
broadcast sponsored by the Brazilian Automo- near future.
tive Engineering Association (AEA). The 208,000 barrel per day (bpd) plant,
Lara also welcomed the change in standards, located in the city of Araucária in Paraná State,
saying: “The new specification is welcome and is scheduled to begin production testing in July,
will bring the quality of the fuel sold in Brazil she stated.
closer to that of the American and European The programme will help determine the
market. The intrinsic quality of gasoline will commercial viability of HVO production, she
increase in terms of octane and specific mass, added. “The economic viability of renewable
which means a more efficient fuel and better diesel depends on its recognition in compli-
protection for vehicle engines. This will allow ance with the rule of adding biofuels to diesel,
a reduction in gasoline consumption per kilo- a subject that is currently under discussion at
metre travelled.” the ANP,” she commented. “This will allow an
The new regulations, which are designed to increase in the competitiveness of biofuels for
ensure the availability of gasoline suitable for the diesel cycle.” ™

ARGENTINA
Argentina to resume gas subsidy payments

ARGENTINA has decided to resume payments import greater volumes of LNG, putting further
on a subsidy programme designed to support pressure on its import-export balance. As such,
production at a number of natural gas blocks in the government is looking to come to terms with
the giant Vaca Muerta shale formation. producers in order to avoid such an outcome.
The government of President Alberto It is negotiating a four-year deal that would
Fernández has agreed to release $250mn worth cover the first year of any new government that
of payments that have been pending for the last assumes power after Fernández’s term ends.
six months within the framework of its “Plan “The first year of the next administration
Gas” programme, according to local press would be covered. We do not want to leave
reports. The payments, which are likely to ben- something that exploits them in the hands of
efit local firms Tecpetrol and CGC the most, are the next administration, whatever their political
set to resume in August once a deal has been colour,” a government source told LMNeuquen.
agreed with producers. Buenos Aires is cur- Vaca Muerta, one of the largest shale forma-
rently in negotiations over the deal with state- tions in the world, is around the size of Belgium.
run YPF and other producers. It contains around 308 trillion cubic feet (8.722
The resumption of these incentives could trillion cubic metres) of shale gas, according
help plug a looming supply gap in 2021, accord- to the US Energy Information Administra-
ing to a report from the local daily LMNeuquen. tion (EIA). It has attracted investment from
The government is concerned about the medi- a number of foreign majors, including Total
um-term impact of current low levels of gas pro- (France), ExxonMobil (US), Chevron (US), a
duction, and energy officials have warned that subsidiary of BP (UK) and Royal Dutch Shell
the country’s domestic supplies in 2021 could be (UK-Netherlands).
short by up to 30mn cubic metres per day during Companies working at Vaca Muerta fields
the winter, if consumption levels remain static. have seen output decline over the last two
Lower demand could force Argentina to months. ™

P16 www. NEWSBASE .com Week 25 25•June•2020