Supply & Demand

Political crisis engulfs Brazil’s gas and LNG sectors

Brazil’s deteriorating political climate has the potential to reduce the country’s need for imported gas and LNG even further Brazil’s deteriorating political climate has the potential to reduce the country’s need for imported gas and LNG even further.
By Abhishek Kumar 23 June 2017 0 26493
Thousands of protesters hit the streets as corruption allegations continue to dog Brazilian president, Michel Temer. (PA)

The escalation of corruption allegations against President, Michel Temer has compounded challenges faced by Brazil’s gas and LNG sectors. The industry has already been battered by the country’s weak macroeconomics, and the deepening political crisis has the potential to damage its long-term prospects.

Brazil has once again become embroiled in political turmoil that could cost its president his job. Economic reforms – including to the oil and gas sector – could be delayed, watered-down or shelved. This in turn would prolong Brazil’s economic weakness and deter...