Abstract

The liquefied natural gas can overcome current barriers, mainly for natural gas transportation over long distances, enabling global trade and overcoming intercontinental distances. Following this trend, Brazil is entering this global market for liquefied natural gas. Therefore, this study aims to evaluate the prospects and challenges of liquefied natural gas for the Brazilian natural gas market through reports from the government and the national industry. It was possible to identify the strengths, weaknesses, opportunities, and threats (SWOT) of this natural gas supply option within the national matrix through the SWOT analysis. After this, the gravity, urgency, and tendency (GUT) matrix were applied and adapted to classify just one dimension, as the importance of each point of the SWOT. As a result, substantial material was gathered for analysis demonstrating positive and negative characteristics of liquefied natural gas for Brazil, besides the government's view on the subject, which can be useful mainly for the academic, commercial, and industrial.

Highlights

  • Natural gas (NG) in Brazil is gaining relevance in the Brazilian energy mix, being pointed out as responsible in 2019 for 6.9% of all energy consumption among all sources and with growth prospects for 9.2% in 2029 (EPE, 2021b)

  • The recent changes in the legislation and regulation of the NG sector that have arisen from the government program “New Gas Market” (Novo Mercado de Gás) (2019) (FGV, 2019a; Ministry of Mines and Energy (MME), 2019b) have caused an evolution in all links of the chain and aroused the interest of several national and international companies to invest in the sector of Brazilian NG, generating new opportunities (FGV, 2019a)

  • This program represents another step in the evolution of the gas market, as it was built upon previous programs such as “More Gas Brazil” (Mais Gás Brasil) (2013) and “Gas to Grow” (Gás para Crescer) (2016), the latter generating forums at several critical points with contributions from various agents that generated knowledge to arrive at the most recent program (FGV, 2019a)

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Summary

Introduction

Natural gas (NG) in Brazil is gaining relevance in the Brazilian energy mix, being pointed out as responsible in 2019 for 6.9% of all energy consumption among all sources and with growth prospects for 9.2% in 2029 (EPE, 2021b). The participation of natural gas in the Brazilian energy mix consists of domestic production of pre-salt and post-salt, the Bolivia-Brazil gas pipeline (GASBOL), and imports of liquefied natural gas (LNG) from several countries, such as Nigeria, Trinidad and Tobago, The United States, among others. It is possible to transport more LNG than NG, being attractive mainly for transportation over long distances such as intercontinental or interoceanic ones (Zhang et al, 2018). It can be used for fueling the vehicles that are used for its own transportation, such as trucks and ships. Besides the transformation into a gaseous state for transporting, LNG can be used in the liquid form in various applications such as electricity generation or as raw material in the industry (Zhang et al, 2018)

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