Brazilian group sees $15 billion outlay in gas industry in 10 years

Around $15 billion will be invested in Brazil's natural gas sector in the next 10 years, forecasts the National Organization of Petroleum Industry. Gas represents only around 3% of Brazil's energy matrix but the government plans to increase that to 12% within the next decade.

Nov. 6, 2001

By an OGJ Online Correspondent

RIO DE JANEIRO, Nov. 6 -- Around $15 billion will be invested in Brazil's natural gas sector in the next 10 years, forecasts Delma Quintanilha, project manager of the National Organization of Petroleum Industry.

The organization is composed of private sector members plus representatives of the government, Petroleo Brasileiro SA (Petrobras), and equipment producers for the oil and gas industries.

At present, natural gas represents only around 3% of Brazil's energy matrix. The government plans to hike this figure to 12% within the next decade.

Heavy investments are already being made in the construction of gas fired thermoelectric plants throughout the country. Quintanilha also cited the construction of the gas-chemical complex being built in Duque de Caxias, Rio de Janeiro state.

"The feverish construction of pipelines to transport gas and the building of terminals are excellent business opportunities which did not exist a few months ago," pointed out Quintanilha.

Petrobras reports that around 6 million cu m/day of gas are flared at Campos basin, off Rio de Janeiro state. The oil company is studying ways to install an infrastructure to utilize this gas.