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Due to the lack of a pipeline and infrastructure, 45% of the national production of natural gas is reinjected into wells

Written by Flavia Marinho
Published 02/07/2020 às 16:30
Due to the lack of a pipeline and infrastructure, 45% of the national production of natural gas is reinjected into wells
Due to the lack of a pipeline and infrastructure, 45% of the national production of natural gas is reinjected into wells

The greater the lack of infrastructure in the sector, the greater the volume of natural gas reinjected into oil wells, says the Ministry of Mines and Energy bulletin

MME's Monthly Natural Gas Industry Monitoring Bulletin released in April pointed to a worrying data: in the period from 2006 to April 2020, the country reinjected 101,3 billion m³ of natural gas into oil wells, which means 56 million m³ of natural gas reinjected per day and which corresponds to 45% of all national production.

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Just to give you an idea, the volume is higher than the daily supply of gas to the market, which is 45,6 million m³. The main reason, according to experts, is the lack of infrastructure in gas pipelines and processing terminals, which means that this volume, mostly from the pre-salt layer, does not reach the market on the Brazilian coast.

According to Luiz Costamilan, Executive Secretary for Natural Gas at IBP (Brazilian Institute of Petroleum, Gas and Biofuels), “We must find logistics for the flow and treatment of natural gas that minimizes investment costs in these infrastructures. The flow of pre-salt gas is done through 3 submarine routes. Routes 1 and 2 are in operation, and are owned by several operators, and route 3 is under construction with start-up scheduled for the 4th quarter of 2021”.

The lack of a distribution network for pre-salt natural gas stops generating revenue for the country, as there is no interest from companies in the sector when they see that there is much to be done in the sector in terms of infrastructure.

As a result, Brazil is obliged to import natural gas. It is worth remembering that in June 2019, the government announced the opening of the new natural gas market.

new gas market

According to the government, the price of energy for the industry could drop 40% in about 2 years, this drop, however, did not reach the consumer, although government agents claim that the work is in progress, as stated by the director of the Natural Gas Department of the Ministry of Mines and Energy, Symone Christine de Santana Araujo, “The opening of the market and the reform of the legal and regulatory frameworks, in progress, will provide a business environment more favorable to investments and competition”.

Petrobras, on the other hand, declared in a note the actions it has taken to contribute to increasing the competitiveness of the sector.
“Several gas transport assets that the company owns or has a stake in are for sale, the process of leasing the LNG Regasification Terminal in Bahia and negotiations for access to other companies to its natural gas processing plants. We also reduced the volume of gas contracted with YPFB in the Bolivia-Brazil gas pipeline. Which allows the excess volume of natural gas to be traded directly by YPFB with other market agents in Brazil.”

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Flavia Marinho

Flavia Marinho is a postgraduate engineer with extensive experience in the onshore and offshore shipbuilding industry. In recent years, she has dedicated herself to writing articles for news websites in the areas of industry, oil and gas, energy, shipbuilding, geopolitics, jobs and courses. Contact flaviacamil@gmail.com for suggestions, job openings or advertising on our website. Do not send your resume, we are not hiring!

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