Over the past fifteen years, Brazil has experienced a significant 138% increase in natural gas production.
This remarkable growth, fueled by the Santos Basin’s pre-salt reserves, raised daily output from 62.3 to 148.7 million cubic meters by early 2024.
Despite these impressive figures, market supply has only seen a 37% rise in the same period. Such a disparity largely results from infrastructural constraints.
In March 2024, 58% of natural gas was reinjected to maintain oil pressure, limiting its market availability to 32%.
Historically, oil giants like Petrobras have prioritized oil extraction, which is more lucrative than natural gas.
In Brazil, about 85% of natural gas boosts oil yields through reinjection, not market supply.
Brazil’s Energy Minister, Alexandre Silveira, has pledged to tackle these infrastructure issues.
He announced plans to complete the Rota 3 maritime pipeline soon.
This pipeline is designed to transport up to 18 million cubic meters of gas daily to the Polo Gaslub facility, thereby significantly boosting processing capabilities.
Brazil’s reliance on imported natural gas peaked at 728.6 million cubic meters in March 2024, the highest in nearly two years.
This trend underscores an increasing reliance on foreign liquefied natural gas (LNG) to satisfy domestic demands.
The narrative of Brazil’s natural gas sector tells a compelling story of vast resources hampered by inadequate infrastructure.
This scenario highlights the pressing necessity for improvements in energy management.
Such enhancements are essential to promote economic stability, energy independence, and adherence to environmental commitments.
As Brazil progresses, the development of its energy sector becomes a pivotal factor for its future.
This underscores the importance of a balanced and forward-thinking strategy in managing its natural resources.