To Satisfy Its Appetite Brazil Goes Looking for Gas in Pipelines and Ships

Brazil’s oil and gas industry already represents 9% of the country’s GDP and should be reaching 10% some time next year, according to Haroldo Lima head of the Oil, Gas & Biofuels Nacional Agency.

Lima said that in the 70s the oil and gas industry represented 2.7% of GDP but following the 1973 oil shock Brazil invested massively in developing the industry and hydrocarbon reserves, which soared from 6.2 billion barrels in 1995 to 11.8 billion barrels in 2005.

Speaking in Rio do Janeiro next to Mines and Energy Minister, Silas Rondeau, Lima said the evolution of the industry in the last decade is proof of the merits of Law 9.478 of 1997 better known as the "oil bill".

In 1997 Brazil imported 47% of the oil and derivates it consumed and during the last twelve months oil dependency had plunged to 3%.

"This year Brazil reached oil self sufficiency but to keep it up it’s necessary to make new findings," said Lima.

Rondeau said that Brazil’s natural gas policy priorities are exploiting domestic resources and the building of a network of pipelines in South America linking producing and consumer countries.

The backbone of the network is the 10,000 kilometers gas pipeline from Venezuela to Argentina which should transport 150 million cubic meters per day with an estimated cost of US$ 23 billion.

The priority of such a project is under consideration by committees in five different countries, Argentina, Brazil, Venezuela, Chile and Bolivia, revealed Rondeau who added that "it figures in the short list agenda for Mercosur’s next summit in mid January".

"It’s a consortium, integrating the main gas pipelines as happened 40 years ago in Europe", said Rondeau.

Almost 50% of Brazil’s natural gas supply currently depends on Bolivia, a country with which Brazil’s Petrobras has an ongoing controversy over prices.

Mr. Rondeau said Brazil has plans for daily imports of 20 million cubic meters of liquid natural gas which are to be shipped to special terminals plus boosting domestic production from new deposits which should reach 24 million cubic meters pd by 2008.

"These options together, no matter where the gas comes from, be it by pipeline or by sea will be ensuring Brazil’s demand with its own gas production efforts," said Rondeau underlining that "we’re talking on a 30 year horizon based on proven reserves and depending on the price the final consumer will have to pay".

However Rondeau pointed out that the South American pipeline project "will only take off if prices are competitive. Nobody is going to embark on a non viable project."

Mercopress

Tags:

Ads

You May Also Like

It’s Back to Poverty for Half a Million Middle-Class Brazilians

Prosperity seems to be a rare commodity these days in Brazil. Over half a ...

Brazil’s Boeing Accident Report Concludes Nothing and Blames No One

The just-released preliminary report on the September 29 Boeing 737 accident in the Brazilian ...

Half of Brazilians Are Now Middle Class, But 40% Are Still Very Poor

The middle class in Brazil has grown since 2003 when Brazilian President Luiz Inácio ...

Back in Africa

Closing my eyes I let the sounds and smells drift over me. The colorful ...

A Night of Awards for Brazilian Topnotch Exporters

The Brazilian Export and Investment Promotion Agency (Apex) promoted last night, November 23, in ...

Bank Merger in Brazil Should Reduce Credit Shortage, Says Minister

Guido Mantega, Brazil's minister of Finance, believes that the merger of Brazilian banks Itaú ...

Brazil’s President Elect in Korea Urges Global Effort to Rein in the Dollar

Dilma Rousseff, Brazil’s president elect, has arrived in Seoul, the capital of South Korea, ...

Castor oil plant in Brazil

Brazil Invites You to Plant the Oil of the Future with Us

The 21st century will be marked by a crucial debate: how can we make ...

Up-and-coming Brazilian Singer Lili Rocha Is a Rocking Rising Star

Lili Rocha’s singing career began in the streets and squares of her small native ...

World Bank Helps Brazil’s Black Quilombo Population

World Bank (IRBD) resources will benefit the population of the Curiaú Quilombo, through the ...