Brazil Onshore Gas is New Pre-Salt: Daily

By Stephen Eisenhammer, Contributing Reporter

RIO DE JANEIRO, BRAZIL – Brazil will become self-sufficient in natural gas within the next five years, after which it will grow into an influential exporter, according to Edison Lobão, Brazil’s energy and mining minister. In an interview with Globo, Lobão said Brazil is set to “live in a golden age for gas”.

Edison Lobão, Brazil's energy and mining minister, has said that Brazil is entering a golden age for gas, Brazil News

Edison Lobão, Brazil's energy and mining minister, has said that Brazil is entering a golden age for gas, with onshore discoveries that rival the pre-sal oil find, photo by Renato Araújo/ABr.

Brazil’s national petroleum agency (ANP) working alongside a number of energy companies have uncovered massive on-land gas reserves, in Mato Grosso, São Francisco, Parecis and Minas Gerais, which could be as large a discovery as the oil in the pre-salt, off-shore Brazil.

Natural gas is most commonly used in gas powered power plants to generate electricity although it is also an increasingly popular vehicle fuel. Many taxis in Rio today run off natural gas.

Brazil, which currently imports natural gas from Bolivia as well as Liquid Natural Gas (LNG) from countries such as Nigeria and Qatar, is set to increase its supply to the domestic market by 360 percent to 300 million cubic meters per day by between 2025 and 2027.

By 2020 Petrobras, Brazil’s largest energy company, estimates to be producing 200 million cubic meters per day.

The potential may be enormous, however, much work remains to be done. Despite annual investment of US$120 million by the ANP, 96 percent of the basins are still unexplored.

ANP will need to organize new bidding rounds to sell exploratory and production rights to energy companies. New bidding rounds were stalled in 2008 following the pre-salt discovery.

Read more (in Portuguese).

* The Rio Times Daily Update is a new feature we are offering to help keep you up-to-date with major news as it happens.

4 Responses to "Brazil Onshore Gas is New Pre-Salt: Daily"

  1. anthony giuffrida  April 30, 2012 at 12:00 PM

    another one just to put the icing on the cake — Brazil is amazing! I hope you are investing here and not just spending here!

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