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Drought boosts Brazil LNG terminal use

  • Märkte: Natural gas
  • 14.10.24

Brazil's LNG imports rose by 112pc in the first nine months of 2024, according to the trade ministry, in part from a prolonged drought that boosted gas-fired power generation to replace lost hydroelectric capacity.

Para, Sao Paulo, Sergipe and Santa Catarina's states' LNG terminals together were responsible for 12pc of Brazil's total gas imports over the first three quarters of the year.

In September alone, Brazil imported $485mn in natural gas, 277pc more than in the same month last year.

Since the last major drought in 2021, Brazil's LNG import and regasification capacity has grown from 90mn m³/d to 126mn m³/d spread over seven terminals.

State-controlled Petrobras' Bahia and Rio de Janeiro LNG terminals remain the main entry points, with 47pc and 7.6pc, respectively, of import volumes.

Sao Paulo state's Compass terminal in Santos took in 5pc of all LNG imports in the first three quarters, leading private operators. Sergipe's terminal, owned by Eneva, brought in 4.8pc, followed by Para's and Santa Catarina's terminals, which are not connected to the pipeline grid.

Historically, Brazilian LNG terminals are connected to thermoelectric power plants and used to provide flexibility to the national electrical grid, given the intermittent nature of wind and solar generation.

Because Brazilian natural gas production is mostly associated with enhanced oil recovery, it is more difficult to redirect that gas to other uses without pinching crude output. The jury is out as to whether state-controlled Petrobras' new Rota 3 pipeline will translate into more domestic gas supply for power generation.

New facilities are being established as multiuser import hubs rather than standalone single-user LNG-to-power terminals. But there is room for the market to enhance liquidity and foster competition in pricing and product offerings, said Diogo Romero, a researcher for the Brazilian Center for Regulation in Infrastructure. Sao Paulo's and Santa Catarina's terminals, for instance, are not designed to serve power generation.

Brazil LNG regasification capacity
TerminalOperatorStateGas transport grid connectionCapacity (mn m3/d)
1Baia de GuanabaraPetrobrasBaia de Guanabara, Rio de Janeiro stateNTS20
2Bahia (TRBA)PetrobrasBaía de Todos os Santos, Bahia stateTAG20
3São Paulo (TRSP)CompassSantos, Sao Paulo stateSubida da Serra pipeline – Classification under dispute14
4Gas SulNew Fortress EnergyBaía de Babitonga, Santa Catarina stateNTS15
5SergipeEnevaBarra dos Coqueiros, Sergipe stateTAG21
6AçuGNARio de Janeiro, Rio de Janeiro statePlanned21
7BarcarenaNew Fortress EnergyParaNot connected15

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