Brazil to increase natural gas production by 14 million cubic meters per day

Brazil currently consumes around 60 million m³ of natural gas per day and produces around 45 million m³ per day

Brazil’s vice president and minister of development, industry, and foreign trade, Geraldo Alckmin, announced on Thursday that the Rota 3 natural gas pipeline will be operational by the second half of 2024. The pipeline will increase Brazil’s daily natural gas production by 14 million cubic meters (m³).

The decision was made at a meeting at the Planalto Palace, where Alckmin was joined by the ministers of agriculture, Carlos Fávaro, and mines and energy, Alexandre Silveira, as well as Petrobras CEO Jean Paul. The meeting was to discuss the increase in natural gas supply and the construction of nitrogen fertilizer plants.

The country currently consumes around 60 million m³ of natural gas per day and produces around 45 million m³ per day. “This is more than a third of what Brazil produces today,” Alckmin said.

The Rota 3 pipeline will transport natural gas from the Santos Basin pre-salt field to the Comperj petrochemical complex in Itaboraí, Rio de Janeiro.

“We have been working to create policies that will boost natural gas production,” Silveira said. “We will be able to increase supply in the medium term.”

Also at the reunion, the ministers have discussed the use of fertilizers in the brazilian agriculture.

The country is a major player in the global agricultural market, but it currently imports nearly 90% of the fertilizers. According to Fávaro, reducing this dependence is essential.

“We have seen that during times of pandemic or war, our dependence on the international market makes us vulnerable,” Fávaro said.

“This can increase production costs, leading to higher food prices and making Brazilian agriculture less competitive. Reducing our dependence on fertilizers will bring stability to food prices and food security to Brazil.”

The Rota 3 pipeline is a key part of Brazil’s efforts to increase its natural gas production and reduce its dependence on imported fertilizers. The pipeline is expected to create thousands of jobs and generate billions of dollars in economic activity.