Equities
Brazil aims to increase natural gas supply, urging Petrobras to boost production and invest in pipelines amid declining Bolivian imports.
By Mackenzie Crow
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Brazil's Mines and Energy Minister, Alexandre Silveira, has called on Petrobras to intensify its efforts to increase natural gas supplies and reduce prices to aid the revival of the country's industry. Petroleo Brasileiro SA, the formal name for the state-run oil giant, is urged to expedite studies aimed at reducing the volume of gas reinjected into oil reservoirs, a process intended to enhance crude production. This adjustment is expected to make more gas available for sale. Additionally, Silveira advocates for Petrobras and other leading oil companies to invest in new gas pipelines, enhancing domestic gas supplies.
Despite previous public disagreements with Petrobras’s CEO, Jean Paul Prates, Minister Silveira acknowledged some advancements made by the company's management. He highlighted the Rota 3 offshore gas pipeline, which, after delays, is set to commence operations in the latter half of the year. This development is part of broader efforts to mitigate Brazil's growing exposure to gas supply risks, particularly as gas production in Bolivia, a key supplier, declines.
Brazil aims to bolster its natural gas supplies by up to 150 million cubic meters per day through various projects. These include Equinor’s Raia and Petrobras’s Sergipe Aguas Profundas initiatives, alongside imports from Argentina's Vaca Muerta region. Minister Silveira disclosed ongoing discussions with Argentina, Bolivia, and Paraguay to explore potential routes for importing Vaca Muerta gas. Options include utilizing the existing Bolivia-Brazil gas pipeline (Gasbol) or routing through Paraguay's Chaco region. Silveira suggested that Petrobras could potentially collaborate with infrastructure firms to facilitate the importation of this gas, contingent on its economic viability.
Alexandre Silveira, Mines and Energy Minister:
"Petrobras should increase its efforts to boost natural gas supplies and lower prices to help revive the nation’s industry... Petrobras - and other oil majors - should also invest in new gas pipelines to increase domestic supplies."
Jean Paul Prates, CEO of Petrobras:
"[Acknowledged as making 'some progress' by Silveira, with specific mention of Rota 3 pipeline scheduled operations.]"
Finance GPT
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