Brazil’s natural gas supply expected to increase by 34% by 2032

According to the Energy Research Company (EPE), Brazil’s natural gas supply is anticipated to increase by 34% from 2023 to 2032.

The growth will be fuelled by the increase in local gas availability due to new operational projects.

The gas supplied to the national pipeline network is projected to increase from 134 million m³/day in 2023 to 182 million m³/day in 2032.

The study does not account for gas produced but reinjected into wells or isolated gas systems connected to the pipeline network.

It also omits Liquefied Natural Gas (LNG) terminals not linked to the network.

The demand is projected to increase by 26% driven by growing industrial, commercial, and residential needs.

The study highlights that the most significant increase in gas supply will come from local production, with new fields coming online between 2027 and 2032.

These include offshore projects in Sergipe and onshore in the Potiguar basin.

The gas infrastructure is also set to expand with new natural gas processing units and pipelines planned to come on stream in the next decade.

Six new pipelines are planned, three for production flow and three for transportation, expanding the onshore gas network.

Despite increased national production, imports will continue to play a significant role in meeting domestic demand.

EPE indicates that gas imports should remain a crucial part of the Brazilian market, with an increase in capacity in the coming years due to new LNG terminals.

The study also considers the possibility of importing gas from Argentina, but since the pipeline extension plan is yet to be finalized, the supply capacity is considered uncertain.

However, the study underscores that additional structures to treat gas will be needed by 2032 to accommodate the market’s available volume.