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Petrobras says LNG imports

fell sharply in 2022

BRAZIL BRAZIL’S national oil company (NOC) Petro- Brazil leaned heavily on imported LNG
bras has announced that its LNG imports in 2021, as it sought gas to fuel thermal power
The drop was due to dropped sharply in 2022, sinking by 74% on plants (TPPs) to make up for HPPs’ inability to
strong hydroelectric the previous year. Additionally, the state-owned operate at full capacity during a severe drought.
output. company revealed that the volume of natural It has not needed to continue doing so – and this
gas imported from neighbouring Bolivia had appears to be fortunate, as spot LNG prices were
dropped by 15% year on year in 2022. considerably higher in 2022 than in 2021.
According to Petrobras’ 2022 financial report, Rodrigo Costa, Petrobras’ chief refining and
the shift in both metrics was a result of the “lower natural gas officer, acknowledged this shift in
natural gas thermoelectric dispatch due to the the NOC’s second-quarter earnings call last
favourable hydrological scenario.” In other year, saying that better water reservoir condi-
words, total national demand for natural gas tions in Brazil had reduced Petrobras’ need to
declined as hydroelectric power plants (HPPs) import LNG cargoes. At that time, Costa said
boosted production as a result of favourable that Petrobras was slated to take delivery of
weather conditions. around 40 LNG cargoes in 2022, down from
The decline in demand was evident over time. 112 in 2021.
Overall, Petrobras imported 6mn cubic metres State-controlled Petrobras began importing
per day of regasified LNG in 2022, but it only LNG to Brazil via a floating storage and regas-
handled 1mn cubic metres per day on average in ification unit (FSRU) in Pecem in 2009. Since
the fourth quarter of the year. By contrast, LNG then, it has established several more LNG import
imports hit a record high of 23 mcm per day in terminals, and Brazil’s government has allowed
2021, marking a 200% jump on the previous several privately owned companies to build ter-
year’s figure. minals of their own. ™

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