Page 5 - GLNG Week 02 2022

GLNG COMMENTARY GLNG

According to other sources, LNG seems working to build three additional LNG terminals
to have come in particularly handy around to add to Petrobras’ existing inventory of five. (It’s
mid-2021, after Brasilia approved new poli- worth noting, though, that the NOC has only
cies designed to compensate for the decline in retained direct control of two of these and has
hydropower output. Data from Brazil’s Minis- leased the other three to private investors.)
try of Mines and Energy show that in June 2021, Even so, Brazil’s government appears to har-
Brazil imported the equivalent of 35.1 mcm bour some hope that this reliance on imported The country is
per day of LNG. At same time, ministry data LNG will be relatively short-lived. Mines and
also show that Brazilian gas demand averaged Energy Minister Bento Albuquerque said last working to build
88.7 mcm per day in the first half of 2021, and November that the country might become a three additional
the June LNG import number is equivalent to net exporter of LNG within five to eight years.
nearly 40% of this. He noted that Petrobras was working with LNG terminals to
Interestingly enough, the total volume of several international oil companies (IOCs) to
LNG imported in June appears to be roughly build the Route 3 pipeline, which will pump add to Petrobras’
equivalent to the growth in gas demand rose gas from offshore fields in the pre-salt section
in Brazil’s industrial and power-generating of the Santos basin to an onshore processing existing inventory
sectors in between January and June of last facility in Rio de Janeiro State. When this pipe- of five.
year. Ministry data show that gas demand in line becomes operational in early 2022, he said,
the country’s power-generating sector came it will serve as an export facility for gas from
to 44 mcm per day, up by 69% or 26 mcm per offshore sites.
day on the H1-2020 figure of 18 mcm per day, Albuquerque’s optimism about exports may
while demand in the industrial sector reached be premature, though. Petrobras may be more
42 mcm per day, up by 16% or 10 mcm per day inclined to direct pre-salt gas to the domes-
on the H1-2020 figure of 32 mcm per day. tic market in the near term, assuming that the
pipeline does begin operating this year as antic-
An eventual exporter? ipated, and wait until the country’s capacities are
In the near term, Brazilian gas demand is slightly more developed before it starts trying to
expected to remain strong, and the country is enter the export market.™

Week 02 14•January•2022 www. NEWSBASE .com P5