Brazil reduces natural gas reinjection, ups offer

Brazil's natural gas available to buyers rose by 17pc to 57.1mn m³/d in October from the prior month as reinjections were reduced to meet avid thermal power demand in the drought-stricken country.

Available natural gas, the total sold to buyers after flaring, reinjection and consumption at platforms, was 4.5pc above October 2020 levels, according to preliminary data from Brazil's oil and gas regulator ANP.

Brazilian natural gas production edged up by 1.3pc to 131,703mn m³/d (4.63 Bcf/d) in October from the prior month, about the same as the increase from a year earlier.

With Brazil's market thirsty for more gas supply amid a 91-year drought in the mainly hydro-powered country, producers sought to decrease reinjection so they could offer more gas to buyers. Some of the natural gas produced in oil and gas wells in Brazil is pumped back into wells to repressurize them to increase oil production.

Reinjection was 14.5pc lower at 57.35mn m³/d in October on the month and about 1.3pc lower than a year earlier.

With less reinjection, flaring increased by 9pc to 4.34mn m³/d in October, the highest since May 2019, on the prior month. This is 43pc higher than a year earlier.

Consumption of gas on production platforms was also reduced to offer more gas to buyers, falling by 4.2pc on the month and lower by 3.5pc from a year earlier.

By Flávia Pierry