ANL 15.88 Decreased By ▼ -0.27 (-1.67%)
ASC 13.50 Decreased By ▼ -0.42 (-3.02%)
ASL 18.30 Decreased By ▼ -0.47 (-2.5%)
BOP 8.88 Increased By ▲ 0.13 (1.49%)
BYCO 7.35 Decreased By ▼ -0.19 (-2.52%)
FCCL 18.09 Increased By ▲ 0.30 (1.69%)
FFBL 23.10 Increased By ▲ 0.02 (0.09%)
FFL 15.30 Increased By ▲ 0.05 (0.33%)
FNEL 7.11 Decreased By ▼ -0.14 (-1.93%)
GGGL 16.86 Decreased By ▼ -0.04 (-0.24%)
GGL 28.15 Decreased By ▼ -1.05 (-3.6%)
HUMNL 6.64 Increased By ▲ 0.16 (2.47%)
JSCL 19.60 Decreased By ▼ -0.50 (-2.49%)
KAPCO 27.00 Decreased By ▼ -1.15 (-4.09%)
KEL 3.43 No Change ▼ 0.00 (0%)
MDTL 2.18 Decreased By ▼ -0.06 (-2.68%)
MLCF 35.01 Decreased By ▼ -0.11 (-0.31%)
NETSOL 103.75 Decreased By ▼ -5.20 (-4.77%)
PACE 4.18 Decreased By ▼ -0.17 (-3.91%)
PAEL 27.15 Decreased By ▼ -0.85 (-3.04%)
PIBTL 8.20 Decreased By ▼ -0.22 (-2.61%)
POWER 6.93 Decreased By ▼ -0.07 (-1%)
PRL 16.44 Decreased By ▼ -0.21 (-1.26%)
PTC 9.08 Decreased By ▼ -0.09 (-0.98%)
SILK 1.50 Increased By ▲ 0.02 (1.35%)
SNGP 40.75 Decreased By ▼ -0.27 (-0.66%)
TELE 17.14 Increased By ▲ 0.41 (2.45%)
TRG 130.36 Decreased By ▼ -3.74 (-2.79%)
UNITY 29.90 Increased By ▲ 0.05 (0.17%)
WTL 2.43 Decreased By ▼ -0.11 (-4.33%)
BR100 4,763 Increased By ▲ 46.96 (1%)
BR30 20,671 Decreased By ▼ -168.62 (-0.81%)
KSE100 45,821 Increased By ▲ 321.94 (0.71%)
KSE30 18,006 Increased By ▲ 181.61 (1.02%)

Coronavirus
LOW Source: covid.gov.pk
Pakistan Deaths
28,328
1624hr
Pakistan Cases
1,266,826
62224hr
1.4% positivity
Sindh
466,750
Punjab
438,433
Balochistan
33,149
Islamabad
106,571
KPK
177,132
Markets

Brazil's record LNG imports draw US supply away from gas-thirsty Europe

  • The worst drought in almost a century has starved the hydropower plants that normally supply nearly two-thirds of Brazil's electricity
24 Sep 2021

HOUSTON: Brazil's imports of liquefied natural gas (LNG) are set to hit a record in September, data from Refinitiv and consultancy Kpler shows, as US cargoes normally meant for Europe are diverted to the Latin American nation to address a power shortage.

The worst drought in almost a century has starved the hydropower plants that normally supply nearly two-thirds of Brazil's electricity.

The country has, as a result, turned to US gas to keep its lights on, with its LNG purchases helping drive global gas prices to record levels.

"The strong demand from Brazil means there is less LNG supply being directed to European terminals," said Laura Page, senior LNG analyst with Kpler consultancy firm.

European gas storage has fallen to its lowest in at least 10 years, making traders fiercely compete for LNG ahead of the winter heating season in the Northern hemisphere. Prices in Europe and Asia are at record seasonal levels.

Imports to jump

More than 80% of Brazil's LNG deliveries this month will come from US plants in Louisiana and Texas, Refinitiv data shows. Overall gas imports are set to hit 1 million tonnes by month's end, up nearly 20% over July's record, Kpler estimates.

"The worst month (for demand) will be October," said Rivaldo Moreira Neto, chief of Brazilian consulting firm Gas Energy. "I don't expect any improvement in the next three to six months."

In July, US LNG purchases by Brazil and Argentina combined surpassed China's, with the two taking 62.4 billion cubic feet (bcf) of gas, compared to China's 42.2 bcf, the US Department of Energy (DOE) said.

A record 142 vessels carrying the super-chilled fuel from the United

States landed in Brazil in the six months ended July 31, the DOE said. Some partially discharged in Brazil and emptied their tanks in Argentina. An additional 17 cargoes are on their way.

Added storage

New LNG terminals that will increase import capacity are opening as state-controlled Petroleo Brasileiro relinquishes what was a near-monopoly in natural gas.

Last week, a power plant backed by BP Plc gas connected to one of the first privately owned LNG import terminals was turned on months ahead of schedule to avoid blackouts.

"Until it rains, and we don't know when it is going to happen, price levels will cause despair," said a trader who buys cargoes for Brazil.

Comments

Comments are closed.