Vice President Geraldo Alckmin yesterday called for strategic changes in Brazil’s natural gas production to maintain industry competitiveness.
At a Getúlio Vargas Foundation event, he stressed Brazil’s urgent need to update its natural gas strategies due to rising costs and production complexities.
“Competitive inputs are essential for industrialization, and natural gas is key,” Alckmin stated.
He noted that Brazilian production is more complex than in neighboring countries like Bolivia, largely because Brazil’s gas sources are distant from coastal areas.
Alckmin, also the Minister of Development, Industry, Commerce, and Services, highlighted the need to cut bureaucratic obstacles to reduce costs and improve operations.
He advocated for a thorough revision of natural gas pricing to align with strategic economic goals.
The Brazilian government, alongside the Competitive Brazil Movement (MBC) and FGV, announced the establishment of an observatory.
This entity will monitor and evaluate the implementation of natural gas policies. This initiative aims to boost transparency and efficiency in the sector.
Rogério Caiuby, Executive Advisor of the MBC, praised the initiative, highlighting its potential to provide clear insights into sector complexities.
“This document marks the beginning of a long-term project to energize the market, making it more competitive and dynamic,” he said.
This strategic shift in public policy and industry cooperation signifies a hopeful era for Brazil’s economic landscape.
It aims to strengthen a more robust and competitive industrial sector through efficient, cost-effective natural gas production.
Background – Vice President’s Call for Strategic Changes in Brazil’s Natural Gas Production
In 2023, Brazil significantly reduced its natural gas imports to just 6.5 billion cubic meters, the lowest in 20 years.
This trend of declining imports continued since 2015, except for a brief increase in 2021.
The reduction aligns with Brazil’s push to increase domestic natural gas production and pivot toward renewable energy sources.
The National Agency of Petroleum, Natural Gas, and Biofuels (ANP) data revealed a sharp decrease from the 9 billion cubic meters imported in 2022.
This consistent drop in natural gas imports is part of Brazil’s broader strategy to lessen its reliance on foreign hydrocarbons.