Supply & Demand

Brazil’s LNG demand to shift south during summer

Brazil will face increased LNG demand during summer with only two FSRUs when forecast is for below-average rainfall in parts of the country Brazil will face increased LNG demand during summer with only two FSRUs when forecast is for below-average rainfall in parts of the country.
By Abhishek Kumar 1 December 2017 0 28630
Pecem LNG terminal, Brazil. Pecem LNG terminal. Brazil will increase its reliance on LNG imports during the Southern Hemisphere summer. (Petrobras)

Directional impact on forecast:
Bullish on Latin America’s spot LNG prices

Brazil’s over-dependence on hydropower generation will persist, despite the country boosting domestic gas production. This, together with forecasts for below-average rainfall in parts of Brazil during summer (December-February), is expected to see the country increasing its reliance on LNG imports. Meanwhile, Brazil will have only two FSRUs to cater for any rise in LNG demand this summer, unlike the situation last summer when it had three vessels at its service. Consequently, the country...