Brazil LNG imports on the rise
Imports of liquefied natural gas into Brazil rose to 24.1 Bcf during March rising 48% compared to the month before.
The increase in in imports is a result of Brazil’s preparations for the dry season that runs from April through November, reports Platts unit Eclipse Energy.
The country’s hydroelectric power takes up 80% of domestic power generation but recent droughts prompted Brazil to turn to alternative fuels in order to secure the power supply.
Due to low reservoir levels, analysts believe that it would be best to ration power during this period in order to avoid more severe consequences in years to come. According to analysts, if the reservoir levels fall below 10%, which is a likely option without power rationing, even a normal rainy season would not restore the reserves to normal levels.
It is believed the only question now is when the power rationing happen.
LNG World News Staff