Brazil gas reinjection hits record in September

Natural gas reinjection into Brazilian production wells reached record levels in September, according to preliminary data from Brazil's oil and gas regulator ANP.

Reinjection was 4pc higher compared to the previous month's levels at 67mn m³/d (2.37 Bcf/d), and 22pc higher than the same period in 2020. Natural gas availability offset that increase in reinjection, with its lowest level since May 2020, at 48.8mn m³/d — down by 12pc compared to August and a 7.9pc decrease compared to September 2020.

Some of the natural gas produced in oil and gas wells in Brazil is pumped back into the wells to repressure the reservoir and increase future oil production.

The record reinjection comes amid the worst drought in Brazil in 91 years, which has restrained the hydropower generation and increased the country's demand for natural gas for power generation. Currently Brazil is importing LNG to meet its need for thermal generation. In September, preliminary data from the economy ministry showed 694,191 tons (3mn m³/d) of LNG imported.

Total natural gas production in the country was 133mn m³/d, 6.5pc higher during September than in the same period last year, but 2.4pc lower than in August 2021.

Consumption of gas on production platforms to run operations was 3.6pc above previous year's numbers and 0.9pc behind the previous month's, at 14.3mn m³/d. Flaring increased by 14pc and 28pc compared to the previous year and month, respectively, at a total of 4mn m³/d.

By Rebecca Gompertz