Brazil To Import More LNG If Bolivia Supply Falters

(Argus, 14.Nov.2019) — Brazil will increase LNG imports if pipeline natural gas supply from Bolivia is interrupted because of political unrest, according to Brazilian hydrocarbons agency ANP.

Brazilian state-controlled Petrobras confirmed that it was notified by Bolivian state-owned YPFB on 11 November about possible fluctuations in gas supply.

Under a contract that expires next month, Bolivia supplied Brazil with an average of 15.33mn cm/d of gas during the first eight months of the year, according to the mines and energy ministry’s monthly gas bulletin. During the same period, Brazil consumed 9.19mn cm/d of LNG.

The ANP said that while supplies from Bolivia are currently normal, the country’s back-up plan includes increased LNG imports as well as the use of alternative fuels, such as LPG, fuel oil and diesel, to guarantee domestic supplies.

Petrobras operates Brazil’s two operational LNG terminals featuring the 20mn cm/d Excelerate Experience floating storage and regasification unit (FSRU), which is moored at the Port of Pecem in Ceara state, and the 14mn cm/d Golar Winter FSRU at the Bahia terminal. A third terminal located in Rio de Janeiro state has been idle since September 2018.

To supply south-central Brazil, which is the market for Bolivian gas, Petrobras would need to transfer one of the FSRUs to Rio de Janeiro, which is connected to pipeline infrastructure in the region.

Brazil’s gas demand typically eases in December, as summer rains resume and hydroelectric generation increases.

Brazil’s government has recognized Bolivia’s interim presidency of Jeanine Anez, in place of Evo Morales who resigned on 10 November and fled to Mexico.

Argentina, which also imports Bolivian gas and has been warned of possible disruptions, has not recognized Anez.

***