Minister says gas policy is ‘disproportionate’ – 06/16/2023 – Market

The Minister of Mines and Energy, Alexandre Silveira, criticized this Friday (16th) the natural gas policy in force in Brazil and demanded changes in Petrobras’ posture in relation to the subject.

“The United States reinjects 12.5% [do gás] to be able to produce and boost oil production. Africa reinjects 23.9%. Europe, 24.7%, and Brazil reinjects 44.6%”, said the minister.

“Without an explanation, and so far they haven’t been able to show me one, it’s a completely disproportionate re-injection,” he added.

The statements took place at a seminar promoted by the Esfera Brasil group in Rio de Janeiro. Silveira was on a panel that also had the participation of the Minister of Cities, Jader Filho, and the governor of Rio de Janeiro, Cláudio Castro (PL).

The Minister of Mines and Energy defends expanding the supply of gas on the market by reducing reinjection into oil extraction wells. The measure would aim to help industrial activity.

The reinjection of gas in oil fields is a subject that tends to divide opinions in the sector. The technique, on the other hand, is seen as a way to optimize productivity, as it increases the internal pressure of the reservoirs.

In an interview with Valor Econômico newspaper on Thursday (15), Silveira had already criticized Petrobras due to its fuel policy.

This Friday, he assessed that the state-owned company’s governance needs to be respected, but that the company also has to “fulfill its social role”.

“We are permanently dialoguing so that the policy of gas, of reinjection, changes so that we can have a bigger offer”, affirmed the minister.

“It’s an observation, it’s not an isolated criticism. There has been disdain with the gas policy in recent years.”

He also said that in recent years the area has been subject to “negligence”. In the minister’s view, gas is fundamental both for energy security and for the reindustrialization of Brazil.

At another point in the panel, Silveira stated that next week the government will launch a public consultation on the renewal of electricity distribution contracts, in a process that begins with the concessionaires of Rio de Janeiro and Espírito Santo.

Silveira said that the government will be “careful” with the issue, to ensure peace of mind for consumers and not to commit injustice.

With Reuters