Market

Lack of natural gas reflects weak energy integration in Latin America

Two plants rely on imported gas from Bolivia and Argentina.

Valor Econômico
28/04/2014 14:23
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Lack of natural gas reflects weak energy integration in Latin America
Natural gas supply difficulties for thermal plants in Cuiabá (Mato Grosso) and Uruguaiana (Rio Grande do Sul), which are operating on an emergency basis because of a power crisis, indicate that the energy integration  policy with other Latin American countries, created in the 1990s, still needs to make strides. The two plants rely on imported gas from Bolivia and Argentina, but so far no supply contract has been signed. 
They are only operating because the Brazilian government has "called" Petrobras to help. The need for intervention by the state-run oil giant reveals the difficulties of private companies in operating in the regional gas market. Today’s supply from neighboring countries and from Petrobras is not sufficient to meet demand in Brazil without resorting to imported gas, either natural or liquefied (LNG). 

Natural gas supply difficulties for thermal plants in Cuiabá (Mato Grosso) and Uruguaiana (Rio Grande do Sul), which are operating on an emergency basis because of a power crisis, indicate that the energy integration  policy with other Latin American countries, created in the 1990s, still needs to make strides. The two plants rely on imported gas from Bolivia and Argentina, but so far no supply contract has been signed. 


They are only operating because the Brazilian government has "called" Petrobras to help. The need for intervention by the state-run oil giant reveals the difficulties of private companies in operating in the regional gas market. Today’s supply from neighboring countries and from Petrobras is not sufficient to meet demand in Brazil without resorting to imported gas, either natural or liquefied (LNG). 

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