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LNG in Brazil: challenges and opportunities in industrial decarbonization

Written by Corporate
Published 08/05/2024 às 16:01
LNG in Brazil
Photo: LNG: opportunities and challenges for Brazil in the decarbonization of the industry

Federal Government bets on Liquefied Natural Gas to modernize the industry, facing infrastructure and management challenges

Liquefied Natural Gas (LNG) is emerging as a crucial vector in the global energy transition, promising energy efficiency, improved safety and a significant reduction in polluting emissions. During a recent conference, the Minister of Mines and Energy, Alexandre Silveira, expressed the government's commitment to expanding the energy market LNG, announcing the creation of a specialized committee to supervise and regulate the sector. This measure, according to Silveira, could reduce natural gas costs by 25% in the country, a significant step towards strengthening the green economy.

Internationally, the scenario of LNG is also changing, with a 4,3% increase in global natural gas liquefaction capacity from 2022 to 2023, according to the latest report from the International Gas Union (IGU). However, giants such as China and India are reducing their imports, opting to strengthen domestic production.

The panorama of LNG in Brazil

In Brazil, imports of natural gas from Bolivia fell by around 15% in 2023, which reflects a gradual adaptation to the new dynamics of the energy market. O LNG It plays a vital role in several industries, such as metallurgy, glass production, ceramics and cement, taking advantage of its high calorific value. Furthermore, it is an essential raw material in the chemical industry and in the production of fertilizers, and serves as energy support for thermoelectric plants, especially during peak consumption.

However, as André Ribeiro Chaves, Vice President of Falconi for Basic Industry and Infrastructure, points out, despite the sustainability potential of LNG, there is an urgent need for adaptation by the industrial sector and state governments to absorb this new demand. He highlights that the Brazilian market, although aligned with global trends, still faces significant infrastructure challenges for gas distribution.

Strategies for overcoming obstacles

Among the strategies to advance in the natural gas market are the development of public incentive policies, improved regulations for transportation and storage, and reduction of costs associated with the flow and processing of natural gas. LNG. Furthermore, it is essential that companies review their internal processes to increase productivity and efficiency, setting clear goals for the future.

Overcoming political, economic, social and governance challenges will be key to the progress of the LNG in Brazil, requiring a collaborative approach between governments, companies and civil society. According to Chaves, the proposed changes could not only boost the economy, but also guide the decarbonization efforts of Brazilian industry.

In short, Liquefied Natural Gas has a transformative role for the national industry, promising a more sustainable and economically viable future. Government initiatives and the industrial sector's response will be decisive in ensuring that Brazil fully capitalizes on the opportunities presented by the LNG in the new energy era.

Source: Matheus Briet.

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