Brazil eyeing Urucu gas to assure power supply in north

Brazil’s mines and energy ministry (MME) is consulting oil and gas regulator ANP and state-run company Petrobras on possible actions to maintain gas production and minimize liquids output at the firm's Urucu cluster, in Amazonas state, a source familiar with the matter told BNamericas.  

The government's concern is to meet exceptional thermoelectric demand in the north of the country, amid the drought that is affecting the region.

The lack of rainfall has forced the interruption of operations of Brazil’s fourth largest hydro plant Santo Antônio in Rondônia state, and the activation of the diesel and gas-fired Termonorte I and Termonorte II plants to guarantee energy supply in Rondônia and Acre states. 

Santo Antônio resumed generation last week, but the hydrological situation in the north remains delicate, particularly in the Balbina (Amazonas) and Tucuruí (Tocantins) reservoirs, where water levels are at 46% and 45%, respectively.  

Located in the municipality of Coari, Urucu comprises the Arara Azul, Araracanga, Carapanaúba, Cupiúba, Rio Urucu, Sudoeste de Urucu and Leste do Urucu fields. 

Together, these assets produced 87,860boe/d in August, including 10,393b/d of oil and 12.3Mm3/d of natural gas, according to the latest data from the ANP. 

Petrobras intended to sell Urucu, but the federal company decided to terminate the divestment process in September. 

When contacted by BNamericas, Petrobras said, via its press office, that all the demand for natural gas requested from Petrobras in the north region has been fully met, and that its production assets, as well as the natural gas transportation capacity of the Urucu-Manaus pipeline, contracted by Petrobras with Transportadora Associada de Gás (TAG), are fully available.

The MME’s press office said that logistical operations for fuel supply in the north region have so far not been affected by shortages and that the government is working to improve navigability conditions on stretches of waterways in the region.

Involved in the emergency working group are the ANP, electric power regulatory agency Aneel, public energy research company EPE, Petrobras, Transpetro, the national gas distributors union Sindigás, the LPG distributors Fogás and AmazonGás, the Atem group, national fuel importers association Abicom, national petroleum institute IBP and Brasilcom, which represents fuel distributors. 

In addition to these institutions, national water and sanitation agency ANA, water transportation regulator Antaq, the ministries of ports and airports, and transport, the Brazilian navy and the government of Amazonas state are also involved in the discussions.