Page 4 - LatAmOil Week 28 2022

LatAmOil COMMENTARY LatAmOil

Petrobras describes its CCUS programme as the largest in the world (Photo: Petrobras)
Maximising domestic

gas supplies in Brazil

As a legislator from Sergipe State talks to stakeholders about bringing more gas to shore and reducing

re-injection, he should take a closer look at Petrobras’ development strategy and CCUS solutions

LAST year, the widespread practice of re-inject- gas-burning thermal power plants (TPPs) had
ing gas into offshore oilfields came under close to fill the gap.
WHAT: scrutiny in Brazil. As a result, the country’s total consumption
A member of the lower Defenders of re-injection pointed out that of natural and associated gas rose by 29% year on
house of Parliament the practice had many advantages – that it year in 2021, climbing from about 58.9mn cubic
is trying to draft a bill helped maintain reservoir pressure, thereby metres per day in 2020 to 76 mcm per day in the
to disincentivise gas
re-injection at offshore ensuring more consistent oil production rates; following year.
fields. that it was preferable, from an environmental Data from Abegas, an association formed
standpoint, to flaring off associate gas; and that it by Brazilian gas distributors, show that the
WHY: helped sequestrate Brazil’s carbon dioxide-rich uptick was disproportionately evident in the
The MP has expressed offshore gas below the sea, thereby preventing it power-generating sector, where consumption
concern about domestic from being released into the atmosphere. grew from about 22.3 mcm per day in 2020 to
gas supplies in light Opponents, meanwhile, focused on the fact 33.9 mcm per day in 2021, a 52% y/y rise. (No
of shifts in global gas that gas re-injected into oilfields could not be other sector of the economy showed this level of
markets. delivered to the Brazilian domestic market at upward growth, according to Abegas.)
a time when that market was sorely in need of
WHAT NEXT: additional gas supplies. Planning ahead
The plan should take Brazil usually relies on hydroelectric power The drought has now passed, and the reservoirs
Petrobras’ development plants (HPPs) for up to 80% of its electricity that fuel Brazil’s HPPs have been refilled. As
strategy and CCUS tech- consumption, but last year, hydropower capac- such, the South American country’s need for
nologies into account. ity was so constrained by severe drought that gas is not as urgent as it was a year ago

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