SOUTH AMERICAN ENERGY MARKETS DAILY ROUNDUP (April 29, 2009): Brazil’s gas consumption rises by 3.01% in March to 34.4 million cu m/day
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South American Energy Markets Daily Roundup will be published again on Monday, May 4, 2009.
Wednesday, April 29, 2009
After retreating for two-consecutive months, gas consumption in Brazil rose by 3.01% in March to 34.4 million cu m/day compared with the previous month, reports Gasbrasil.com, citing gas association Abegas. Despite the positive news, gas consumption compared with a year ago plummeted by 32.49%. By sectors, households saw the biggest fall (-6.56%) followed by cogeneration (-2.96%), automotive (-2.41%) and commercial establishments (-0.99%). The industrial southeast, comprising of the state of Sao Paulo, Minas Gerais, Rio de Janeiro and Espirito Santo, consumed the lion’s share of the gas (24.7 million cu m/day). COMMENT: It is a good sign that month-on-month consumption is improving. However, the year-ago figure shows that Brazil’s economy has cooled considerably.
Yacimientos Petroliferos Fiscales Bolivianos (YPFB) president, Carlos Villegas, has asked the supreme court of Bolivia to declare null and void the agreement signed between Catler Uniservice and the state-owned energy company to build an $86 million gas-processing plant at Rio Grande in Santa Cruz department, reports state-owned news agency ABI. The murder in January of a Catler Uniservice energy director after a payoff of $450,000 led to the resignation of former YPFB president Santos Ramirez after he was allegedly linked to the crime. COMMENT: The scandal surrounding the corruption charges against Ramirez are a hard blow for Bolivia’s energy sector. Some analysts claim that corruption in YPFB is more widespread than what the government may want Bolivians to believe.
(Originally published on April 28, 2009) An auction by Petrobras for short-term gas supplies in May saw a 36% fall in prices to $4.20/million BTU, reports Gasbrasil.com, citing Rio de Janeiro daily O Globo. Gas auctioned for the month of June was sold at $4.25/million BTU, a 35% fall. The amount of gas auctioned in May represents 37% of the gas (3.24 million cu m/day) that was offered. COMMENT: The impact of the new gas law, which was signed into law in March by President Luiz Inacio Lula da Silva, appears to be making a positive impact. Even so, some analysts see gas tariffs pricing in the country lacking clear benchmarks and government policy.
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