Platts: Low Water to Boost LNG in Brazil

Low Brazil Hydro to Boost Fossil Fuel-Fired Power Output, LNG Import (Platts)
In a story that runs contrary to the OIES Comment noted recently, Platts reported (Apr. 12) that: “Brazil’s hydropower shortfall will lead the state-owned power grid operator to increase the use of fossil fuel-fired power this year, a move that will eventually lead to higher prices for consumers and a surge of LNG imports… ‘With the weak inflows and consequently water scarcity, we have seen many expensive thermo-electric plants already being dispatched, including fuel oil-powered plants,’ a Brazil-based power trader said. ‘It is very likely that Brazil will import more LNG than was expected.’ Brazil’s hydrology situation is not looking good, as Southeast-Midwest reservoir levels have been stable, totaling only 41.5% of capacity… a year ago, reservoir levels were close to 60%.” Article: Click Here.

Categories: Brazil, Platts