Brazil gas reinjection rises to record

Brazil reinjected a record amount of natural gas into its production wells during August as demand for thermal power generation slips from last year.

Reinjection, in which gas is pumped back into wells to enhance oil recovery or to avoid flaring and the release of CO2, rose in August to 69.6mn m³/d, up by 4.7pc from July and 7.9pc higher than August 2021, according to preliminary data from oil and gas regulator ANP. The previous record was in January, when gas reinjection reached 68.4mn m³/d.

Gas reinjection rose as Brazil generates less thermal power in 2022 than in 2021. Last year, drought reduced hydropower generation and boosted demand for gas-fired power, leading producers to maximize gas production.

Gas available to the market in August was 53.3mn m³/d, a 2.5pc increase from the prior month but a 3.7pc decrease from August 2021.

Brazil's total gas production amounted to 139.9mn m³/d in August, a 3.2pc increase from July and 2.5pc rise from the same period last year.

Gas flaring in August fell to 3.3mn m³/d, a 19pc drop from the prior month and a 6.2pc drop from the same month last year.

By Lucas Parolin