RIO DE JANEIRO, BRAZIL (BDCi) – Brazil will become self-sufficient in natural gas within the next five years, after which it will grow into an influential exporter, according to Edison Lobao, Brazil’s energy and mining minister.
In an interview with Globo, Lobao said Brazil is set to “live in a golden age for gas.”
Brazil’s national petroleum agency (ANP) working alongside a number of energy companies have uncovered massive on-land gas reserves, in Mato Grosso, Sao Francisco, Parecis and Minas Gerais which could be as large a discovery as the oil in the pre-salt, off-shore Brazil.
Natural gas is most commonly used in gas powered power plants to generate electricity although it is also an increasingly popular vehicle fuel. Many taxis in Rio run off natural gas.
Brazil which currently imports natural gas from Bolivia as well as Liquid Natural Gas from countries such as Nigeria and Qatar is set to increase its supply to the domestic market by 360 percent to 300 million cubic meters per day between 2025 and 2027.
By 2020 Petrobras, Brazil’s largest energy company, estimates to be producing 200 million cubic meters per day.
The potential remains enormous but more work remains to be done. Despite annual investment of $120 million by the ANP, 96 percent of the basins are unexplored.
ANP will need to organize new bidding round to sell exploratory and production rights to energy companies. New bidding rounds were stalled in 2008 following the pre-salt discovery.
By: Natania Levine Courtesy: riotimesonline.com Photo: riotimesonline.com 30 April 2012
9:24 a.m P.D.T