Page 11 - LatAmOil Week 09 2022

LatAmOil BRAZIL LatAmOil

The increase was particularly notable in the elec-
tricity generation sector, which accounted for
the largest share of total consumption, it said.
Brazil’s thermal power plants (TPPs) consumed
33.9 mcm per day of gas, up by 52% on the 2021
figure of 22.3 mcm per day, it explained.
Abegas noted that gas consumption had
grown in other sectors of the economy, but to
a lesser extent. The industrial, vehicular and
commercial buyers all reported 15% year-on-
year increases in 2021, using 29.5 mcm, 5.9
mcm and 783,000 cubic metres per day of gas
respectively, up from 25.65 mcm, 5.13 mcm and
680,870 cubic metres per day respectively in the
previous year. Meanwhile, household consump-
tion levels amounted to 1.4 mcm per day, up by
2.7% on the 2020 figure of 1.363 mcm per day.
The upswing in consumption, especially in
the power industry, is hardly a surprise. Brazil
has been consuming more gas over the last year
in response to a severe drought that has reduced
the amount of water flowing through the hydro-
electric power plants (HPPs) that usually pro-
vide most of the country’s electricity.
There has been some seasonal variation in the Brazilian government to make more domes-
consumption levels. Abegas data showed that tically produced gas available for local consump-
TPPs burned only 27,208 cubic metres per day tion. This can be accomplished by reducing the
in the month of December, down by 29% on the volume of gas re-injected into oilfields, he said,
figure of 37,271 cubic metres per day posted in noting that Brazil currently reserved 60 mcm
the same month of 2020. (Power stations typ- per day for this purpose.
ically need less gas in December, as the rainy “Brazil has huge reserves of natural gas in the
season approaches.) pre-salt but has been reinjecting almost half of
In light of the full-year increase in gas con- what it produces,” Salomon was quoted as saying
sumption in the electricity generation sector, in an Abegas statement. “The country cannot be
Abegas’ President Augusto Salomon called on at the mercy of imports.” ™

PARAGUAY
Paraguay’s fuel price hike may be lending

momentum to cross-border fuel smuggling

THE Paraguayan government’s decision to raise than in Paraguay, partly because of the former
domestic petroleum product prices as of Febru- country’s policy of subsiding domestic hydro-
ary 12 appears to be lending extra momentum carbon production and partly because of the
to cross-border smuggling of motor fuel, Última strength of the latter’s currency, the guaraní,
Hora reported earlier this week. against the Argentinian peso.
According to the newspaper, the number of In any event, the gap gives Paraguayan driv-
Paraguayan drivers buying Argentinian gasoline ers and sellers an incentive to seek fuel across
and diesel from black-market dealers in border the border.
towns has gone up since the recent price hike. As of the end of February, Última Hora
For example, Néstor Colmán, an officer in the noted, black market dealers in Nanawa were
7th Police Precinct of Nanawa, a Paraguayan selling premium diesel for PYG5,500-6,000 per
town across the border from the Argentinian litre ($0.79-0.86) and super (blue) gasoline for
city of Clorinda, told Última Hora that the flow about PYG5,000 ($0.72) per litre. By contrast,
of traffic across the boundary had doubled dur- the official price at authorised retail outlets in the
ing the last weekend in February. same city amounts to PYG8,300 ($1.19) per litre
Retail prices for gasoline, diesel and other for premium diesel and more than PYG8,000
refined fuels are considerably lower in Argentina ($1.15) per litre for super (blue) gasoline.

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