<article><p class="lead">Brazil has authorized iron ore producer Vale to import LNG to serve its own heating demand.</p><p>Brazilian oil and gas regulation agency (ANP) will allow Vale to import LNG equal to 1.66mn m³/d (58.6mn cf/d) of regasified fuel, to be supplied by any country, by sea transport. It marks the first time Vale has requested this authorization.</p><p>LNG imports to Brazil are increasing this year as the country faces a severe lack of rainfall and constrained hydropower generation, which makes up 65pc of Brazilian installed power capacity. Until recently, companies in Brazil typically bought gas directly from state-controlled Petrobras. But as the country opens its gas market and the hydropower crisis worsens, authorizations to import LNG from external sources may become more frequent. </p><p>The country regasified an average of 17mn m³/d of LNG in the January-April period this year, compared with an average of 8.28mn m³/d in 2019 and 8.38mn m³/d in 2020, according to Ministry of Mines and Energy data. </p><p>In June <a href="https://direct.argusmedia.com/newsandanalysis/article/2225401?keywords=petrobras%20lng">Petrobras was authorized to increase LNG imports by 50pc</a> to 30mn m³/d. </p><p>Gas-fired power generation has gained more importance in Brazil this year as a result of hydropower generation restrictions, absorbing a larger share of Brazilian gas production. Brazil's gas output averages 57mn m³/d, with an additional average of 59mn m³/d reinjected into oil and gas wells.</p><p class="bylines">By Flávia Pierry</p></article>
