Petrobras caught short on gas supplies

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Brazilian state energy company Petrobras was forced by a court injunction to restore natural gas deliveries to some distributors today after it had trimmed supplies to feed gas-fired power plants instead, raising fears or energy shortages.

Petrobras reduced gas shipments to Sao Paulo state distributor Comgas and to Rio de Janeiro state’s CEG and CEG-Rio last night, but restored supplies to the Rio state clients today after the court decision.


Petrobras said the trimming was needed to meet commitments under a deal to supply thermoelectric power plants, Reuters reported.

However, National Grid Operator ONS rushed to deny that need was caused by a shortage of hydroelectric energy, which accounts for some 85% of Brazil’s power generation. Gas-fired plants are normally used as back-up during the dry season.

The ONS said it kept a few gas-fired plants running in the past few days “for economic merit” after the price of water-based energy rose at the end of the dry season.

Analysts have long been warning of an insufficient amount of natural gas for Brazil’s growing market, saying that this shortage is contributing to rising risks of power rationing in the next few years.

Upstream Online