Increased natural gas-fired electricity consumption in Brazil exacerbates global crisis – IEA

RIO DE JANEIRO, BRAZIL – In July alone, gas-fired electricity generation more than tripled, while hydroelectric production fell 26%, according to a report by the International Energy Agency (IEA).

Gas consumption for power generation increased 79% in the first 7 months of 2021 while electricity consumption from various sources increased 10%.

“Considering the fact that Brazil does not have underground gas storage, flexibility in fuel supply has been achieved through a combination of increased production, of about 5% in 2021, and increased imports,” the report says.

According to the IEA, strong demand for liquefied natural gas (LNG) in Asia and South America has contributed to the global energy crisis.

Europe is approaching winter with lower than average gas stocks as more LNG is being shipped to other world regions.

Yesterday, Bank of America released projections that gas prices are expected to hit record highs even before winter and that the effects of the energy crisis will extend until at least 2025.