Page 8 - GLNG Week 24 2021
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GLNG AMERICAS GLNG
Petrobras may consider ramping
up LNG imports amid maintenance
PERFORMANCE BRAZIL’S Petrobras may increase LNG imports of the country’s power generation mix. Accord-
by 50% to compensate for an expected drop in ing to Bloomberg, Brazil has already imported
domestic natural gas flows when the Rota 1 pipe- 34 US LNG cargoes over the six months up to
line is shut down for maintenance in August, it June – a record number – in an effort to cover
emerged this week. Work on the offshore pipe- the power supply gap. The news service noted in
line is set to begin on August 15, and the resulting early June that Brazilian imports were approach-
reduction in gas flows from the offshore Mexil- ing levels typically seen only from buyers in Asia
hao platform is estimated to have the potential and Europe, eclipsing US shipments of LNG to
to cut gas-fired power capacity by around 3 GW. Chile and Mexico.
Energy regulator ANP’s director Rodolfo Petrobras was reported at the time to be tap-
Saboia said in the Brazilian lower house on June ping the spot market for a further four LNG car-
16 that his agency had approved raising LNG goes. Now, as maintenance on Rota 1 looms, the
imports to 30mn cubic metres per day from 20 number appears set to rise further still.
mcm per day. In the longer term, Brazilian LNG imports
Additional LNG would be processed in the could also rise owing to taxes on new steps in gas
Baia da Guanabara terminal in Rio de Janeiro. production that could discourage investment in
Additionally, Pecem’s floating regasification increased output from offshore pre-salt regions.
terminal would be relocated from Pernambuco The 9.25% federal Pis/Cofins tax applies to inter-
State to Bahia State to help increase LNG pro- mediate activities in the upstream, including gas
cessing capacity by 14 mcm per day. flow from offshore basins, processing and stor-
This comes as Brazil struggles with a drought age. This week, Argus Media cited exploration
that is also resulting in higher demand for LNG, and production companies as saying this favours
given that hydropower accounts for around 70% imported LNG over their production.
AUSTRAL ASIA
Australian government backs oil, gas sector
POLICY AUSTRALIAN Prime Minister Scott Morrison (COVID-19) pandemic. Under the scenario
has pledged that the oil and gas sector will “always” laid out by Canberra in September 2020, Aus-
be a pillar of the economy, even as domestic tralia will see both greater production and
investment in clean energy alternatives grows. consumption of gas. Domestic manufacturing
Morrison, during a video address to Aus- should grow exponentially on the back of lower
tralian Petroleum Production and Exploration gas prices.
Association’s (APPEA) annual conference in The fact that this plan has failed to win sup-
Perth on June 15, said: “The oil and gas sector port from gas producers, the environmental
The Coalition is a major contributor to Australia’s prosperity – lobby and the Australian Energy Market Oper-
government will always has, will always be.” ator (AEMO) has done nothing to dampen the
continue to support the He said the Coalition government would government’s enthusiasm.
upstream and exporters continue to support both the upstream as well “I know there is a new energy economy com-
of LNG amid the energy as exporters of LNG as country transitions to a ing and we need to be ready for it, we need to be
transition. “new energy economy”. part of it, and we will be successful in it,” Morri-
He added: “I want you to know we are back- son said. “We need to make sure that Australia
ing you in to stay on top as one of the world’s succeeds. But that will not come at the cost of
leading exporters of LNG, and with a plan our heavy industry and manufacturing indus-
here in Australia that sees gas as key, the key to tries, it will not come through higher taxes, it
securing reliable, affordable energy in a transi- will come through technology, and innovation
tioning energy market, moving to a new energy and the entrepreneurship of our industry lead-
economy.” ers, through supporting Australia’s resources
Morrison’s government has been promot- sector to explore the future – that’s how we make
ing a “gas-led recovery” from the coronavirus our way.”
P8 www. NEWSBASE .com Week 24 18•June•2021
