Lula to launch bill for new gas stimulus program

The Brazilian government will create a bill to stimulate domestic gas production, increase gas supply and boost investment in infrastructure.

The Brazilian energy council (CNPE), headed by President Luiz Inacio Lula da Silva, today created a work group called "Gas for Jobs". The group will develop propositions for submission to the national Congress aimed at increasing gas supply. The propositions would include allowing swaps with other fuels or crude oil; reducing gas reinjection, which is when gas is pumped back into oil and gas wells to repressure the wells; increasing gas supply for fertilizer and chemical industries; increasing investments that allow gas to be used as a transition fuel; and integrating gas with other low carbon fuel options, as biomethane and hydrogen.

State-owned oil and gas marketing firm PPSA can help finance the investments in all gas production chain links, according to the work group's preliminary descriptions.

The ministry of mines and energy said Lula noted that Brazil must develop ways to stimulate natural gas as a transition fuel.

The Gas for Jobs work group's objectives aim to restrengthen the Brazilian industry by guaranteeing gas supply in the long term, minister of mines and energy Alexandre Silveira said during the meeting. The stimulus to industrial activity with gas supply opportunities is expected to create new jobs.

By Flávia Pierry