Brazil’s Northeast Has Gas Shortfall and It’s Getting Worse

The director of the Petroleum, Natural Gas and Biofuels Agency (Agência Nacional do Petróleo, Gás Natural e BiocombustÀ­veis) (ANP), Victor Martins, declared that there is a shortfall of natural gas for both the generation of energy and industrial use in Brazil’s Northeast region.

Martins especially pointed out the state of Bahia, where according to him the demand for more gas is "clear." Speaking at a seminar at the Commercial Association of Rio de Janeiro, the ANP chief explained that his agency’s studies show that the shortfall will be worse beginning in 2010.

One solution would be to extend the Brazil-Bolivia gas pipeline to the Northeast. "There is time to do so before 2010, but the decision has to be made now," he declared.

Meanwhile, the association of gas distributors (Abegas) reports that there is a deficit of over 16 million cubic meters of natural gas daily in the Northeast.

ABr

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