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Making Natural Gas More Accessible Can Strengthen Industry, Reduce Costs, and Drive Economic Growth Sustainably in Brazil.
More accessible natural gas has become one of the main demands of the Brazilian industrial sector. This is because the resource is not only an energy source but also a strategic element for economic growth and for the transition to a less polluting energy matrix.
Looking at recent history, it’s clear that Brazil has made significant progress in its oil and gas production capacity. However, even with impressive extraction numbers, the high costs of the input still pose a major obstacle for industry.
This scenario shows that the potential of natural gas has yet to be fully explored, primarily due to lack of infrastructure and high prices, which directly affect national competitiveness.
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Moreover, the country faces challenges related to the efficient management of reserves. Oftentimes, decisions regarding gas reinjection or flow depend on short-term economic factors, preventing the industry from fully benefiting from the available resource.
History of Natural Gas in Brazil
The use of natural gas in Brazil traces back to the 1940s when the first extractions began in onshore fields. However, it was from the discoveries in the Campos Basin in the 1970s that the resource gained more relevance.
Even so, for decades, natural gas did not receive the same attention as oil. It was treated as a byproduct of exploration, often burned or reinjected into wells due to lack of adequate infrastructure.
It was only from the 2000s onwards, with increased investments in pipelines and the discovery of the pre-salt, that the country began to see natural gas as a strategic input.
From that moment, the government and private sector began to discuss more intensively ways to turn the resource into a factor of competitiveness and a driver of reindustrialization.
Additionally, new contract and commercialization models emerged, allowing private companies to enter the market and contribute to the sustainable growth of the natural gas supply.
High Prices as an Economic Constraint
Despite the abundance of reserves, the cost of gas in Brazil is still much higher than in other countries. While the international market price hovers around US$ 7 per million BTU, the Brazilian industry spent approximately US$ 16 for the same volume in 2024.
This sharp difference limits the capacity of various industrial sectors. Fertilizer, petrochemical, glass, and ceramic companies face high costs that reduce profit margins and weaken Brazil’s competitiveness in the global market.
According to experts, the explanation lies both in the lack of processing and flow infrastructure and in the pricing model adopted over the years. As a result, the market is rigid, where consumers pay a high price for an abundant input within their own territory.
Therefore, reducing the price of natural gas represents not only an immediate economic advantage but also a long-term strategy to ensure the sustainability of the Brazilian industrial sector.
The Need for Adequate Infrastructure
Brazil produces over 150 million cubic meters of gas per day, according to the National Petroleum Agency, but only about half of this volume reaches the market.
A significant portion is reinjected into wells to maintain reservoir pressure or due to lack of pipelines and processing units.
If there were adequate infrastructure, a significant part of this volume could supply the industry and the electricity sector, reducing the need for imports and balancing prices.
This structural limitation emphasizes the urgency of investments in pipelines and in natural gas processing units. Furthermore, it shows that the challenge is not just to produce but also to distribute the input efficiently.
Investing in infrastructure not only increases supply but also reduces transportation losses and improves energy security, ensuring that Brazil is prepared for future demands.
The Role of Pre-Salt in Natural Gas Supply
The pre-salt, responsible for over 70% of national oil and gas production, represents a unique opportunity for Brazil to expand supply. This region has immense reserves and can ensure supply for decades.
However, to transform this potential into economic reality, it is necessary to overcome regulatory barriers and expand transport capacity.
In this way, natural gas extracted from the pre-salt could reach the market more competitively and meet the growing industrial demand.
Additionally, intelligent exploration of the pre-salt offers opportunities for public-private partnerships, technological modernization, and generation of highly qualified jobs, strengthening the entire national energy chain.
Ways to Reduce the Price of Gas
Studies by the Energy Research Company indicate that the price of gas could be cut in half if Brazil adopts new forms of remuneration for infrastructure investments.
Moreover, reviewing transportation tariffs and amortizing already installed assets could reduce costs passed on to consumers.
With these changes, the input would become more competitive and could stimulate a significant increase in industrial consumption.
Public Policies and Strategic Programs
The government launched the “Gas for Employment” program in 2023. The initiative aimed to streamline access to infrastructure, create room for new suppliers, and authorize the marketing of federal gas by PPSA.
These measures increased competition in the sector and allowed for important advances. In São Paulo, for example, the free gas market already accounts for 30% of consumption.
Furthermore, Brazil began to import gas from Argentina, sourced from Vaca Muerta, which strengthened regional energy integration and helped to pressure prices downward.
The strengthening of regional relations also creates opportunities for technological innovation and sharing of best practices, increasing the efficiency of the sector as a whole.
Natural Gas and Reindustrialization in Brazil
More accessible natural gas can transform the national industry. The industrial sector accounts for about 60% of gas consumption in Brazil. Thus, any price reduction represents a direct gain in competitiveness.
With lower costs, sectors like fertilizers could expand and reduce external dependency, strengthening the nation’s food security.
In the same way, base industries such as glass, ceramics, and steelmaking could resume investments and generate more jobs.
Furthermore, natural gas can serve as a bridge for the energy transition, as it emits less greenhouse gases than coal and oil.
Prospects for the Future
For Brazil to fully leverage this potential, it will be necessary to invest in infrastructure, improve the regulatory environment, and expand competition in the sector.
With these measures, natural gas can cease to be a bottleneck and become a driver of sustainable economic growth.
More than just an economic issue, it is a strategic decision. The country has the resource, has the demand, and has the market. Therefore, it just needs to make natural gas truly accessible and competitive.
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