Page 4 - GLNG Week 02 2022

GLNG COMMENTARY GLNG

What drove LNG imports

to record highs in Brazil?

Efforts to mitigate the impact of drought have made LNG a

crucial component in the country’s energy mix

PERFORMANCE EARLIER this week, Brazil’s national oil com- period between January 1, 2021 and November
pany (NOC) Petrobras said in a statement that 4, 2021, up from the record high of 103 recorded
WHAT: it had seen LNG imports reach record highs last during the full year of 2014.
Petrobras says LNG year.
regasification volumes In 2021, the statement noted, Petrobras’ five LNG’s key role
hit an all-time high above existing regasification terminals took delivery These numbers are important. They show just
40 mcm per day late last of the equivalent of 23mn cubic metres per day how important LNG has become for Brazil in the
June. of LNG on average. This marked a rise of about face of a drought that has restricted the flow of
200% on the previous year’s average of 20 mcm the rivers that usually keep the country’s hydro-
WHY: per day and about 15% higher than the previous electric power plants (HPPs) running. This is
Gas has become Brazil’s record of 20 mcm per day recorded in 2014, it no trifling matter, given that these HPPs, which
preferred alternative fuel said. have a combined capacity of 114 GW, usually
at a time of diminished The NOC indicated that daily delivery vol- provide two thirds of Brazil’s electricity supplies.
hydropower capacity, and umes had been particularly high around mid- In short, after inadequate rainfall deprived
LNG imports are needed year. On June 28 alone, it reported, the country the hydropower sector of water in late 2020 and
to cover rising demand. took delivery of 42 mcm of regasified LNG. This early 2021, the country found itself in need of
was enough to cover nearly 38.4% of total con- another source of energy. Natural gas quickly
WHAT NEXT: sumption, which amounted to 109.4 mcm on was its preferred alternative – and imported
The energy minister’s that date. LNG became part of the solution, since Petro-
hopes for launching LNG Overall, Petrobras added, LNG accounted for bras and other upstream operators could not
imports in five to eight about 30% of all the gas consumed in Brazil last extract enough from domestic fields to keep
years may be premature. year. It also generated a record-high number of thermal power plants (TPPs) running at full
ship-to-ship (STS) transfers, the company said, capacity. The NOC said as much in its statement
referring to an earlier statement that put the this week, commenting that it needed LNG
number of such operations at 104 during the imports to meet customers’ demand.

P4 www. NEWSBASE .com Week 02 14•January•2022