Brazil's August LNG imports up 48% on monthPosted by Mcclure Marcus on January 22nd, 2021 Imports of LNG to Brazil recoiled in August to 1.497 million cubic meters, up more than 48% from imports that totaled 1.010 million cu m throughout July, data from Platts device Bentek Power revealed Tuesday. edta in imports comes as the nation's hydroelectric tanks dip to crucial lows. As of September 1, present capability is at simply 30% in Brazil's Southeast-Central West area, where greater than 70% of the country's hydropower is set up. According to Brazil's Ministry of Mines and also Power, hydroelectric power accounts for upwards of 75% of the nation's overall residential power generation. " Today is an uncommon time for Brazil," stated one market resource, that asked not to be recognized. "The hydroelectric reservoir levels are so reduced that Brazil has no choice however to buy LNG for power generation. Even if the upcoming wet season [November - Might] were to return the storage tanks to their typical levels, I don't think it would change the near-term outlook much." Most lately, state-owned oil and gas firm, Petrobras was listened to out there bidding process boldy for an FOB cargo presently being tendered by a vendor from Trinidad and also Tobago. The cargo, set up for lifting on September 26, is likely to be offered around the mid-$ 11.00 s/MMBtu, according to one portfolio player. Petrobras likewise continues to seek LNG freights for October, November and also December, according to market sources. "Petrobras is getting further out today due to the fact that they don't know if they'll require the supply," stated one South American-based investor. "They're looking primarily for FOB cargoes so if the rainfall comes, it gives them the versatility to sell-off what they do not need." August imports of LNG to Brazil are the 2nd highest possible on record after March 2014 imports, which totaled 1.504 million cu m, adhering to a duration of serious dry spell in February. The March import document was also prompted by issues over an expected surge in electrical power demand connected with Brazil's standing as host of the 2014 FIFA World Mug during June and July. Throughout the very first 8 months of this year, Brazil has actually imported a total amount of 9.3 million cu m of LNG, up from 7.4 million cu m over the very same period in 2013. The greater than 25% boost in imports thus far this year comes as need for electrical energy grows while extreme dry spell conditions remain to hold the tropical nation.Like it? Share it! More by this author |