Brazil authorizes LNG re-loads

Following the rise in supply of hydropower and decline in Brazil’s electricity demand, the state’s Ministry of Mines and Energy authorized the re-export of liquefied natural gas. 

As Platts reports, state-run Petrobras was allowed to re-export up to 6.6 million cu m of gas.

Severe droughts pushed the country to start a strict water rationing policy as the reservoir levels in the Southeast-Midwest regions fell to critically low levels. The policy has resulted in reservoir inflows that were 50% above month average, bringing the reservoir levels up to 37.4% in the month of July. This allowed the Ministry to cut back on production from expensive thermal plants running on diesel and fuel oil.

The electricity demand had also dropped due to a slowdown in economic activity in the country.

A recent slowdown in Brazil’s economic activity has also prompted a reduction in electricity demand.

The reduction freed up LNG volumes that the Ministry of Mines and Energy has authorized to be re-sold on the spot market from Brazil’s three regasification terminals.

This step has also been taken in 2010 as a response to lower electricity demand and natural gas. Recent authorization for re-exports will stay effective through July 31, 2017.

LNG World News Staff; Image: Petrobras