Natural gas consumption grows 6.2% in 2Q22 in Brazil

By Abegas

This is a machine translation of the press release originally published in Portuguese 

Without considering the thermal segment, the average consumption of natural gas in the second quarter of this year (2Q22) throughout Brazil reached 44 million cubic meters/day, which represents a growth of 6.2% in comparison with the result under the same criterion in the second quarter of last year (2Q21), when average consumption was 41.4 million cubic meters/day.

These data represent the sum of the volumes consumed by customers in the industrial, automotive, commercial, residential, cogeneration, raw material and other segments, based on a monthly statistical survey carried out by Abegás with piped gas distribution concessionaires throughout the country.

Considering all segments, total average consumption fell by 27.1% – a result of the good recovery of hydroelectric reservoirs, reducing the dispatch of natural gas thermoelectric plants – from 32 million cubic meters/day in 2Q21 to 9, 6 million cubic meters/day in 2Q22.

“The distribution sector's main indicator is the segments that have strong demand. And what we see in these segments is a growth trend, with an emphasis on industrial consumption, with a 5.2% rise, and natural gas for vehicles, CNG, with an increase of 19.6%”, explains the executive president. da Abegás, Augusto Salomon.

In the second quarter, the industrial segment had an average consumption of 31.6 million cubic meters/day (against 30 million cubic meters/day in the same period of the previous year), confirming a trajectory of recovery of the industry after the most critical period of the pandemic. Another significant recovery was in consumption for automotive purposes. The use of CNG in 2Q22 was 6.7 million cubic meters/day (against 5.6 million cubic meters/day in the average of April/May/June 2021).

The commercial, residential and cogeneration segments also had an upward movement - the high point was the recovery of commerce (23%), in another reflection of the improvement in the health situation, since Brazil faced a serious wave of covid-19 in exactly the second quarter of 2021, causing a series of restrictions on the operation of bars, restaurants and other commercial establishments.

Residential consumption increased by 2.2%.

“Distributors continue to play their role, investing to bring natural gas to more and more consumers. There are already more than 4,149,232 customers connected to the piped gas network. The customer base grew by 6% in this period, with the addition of more than 234 thousand points of consumption. This means that the country has, on average, 641 new customers connected to the distributors' networks per day”, highlights Salomon.

According to the executive president of Abegás, the country needs to invest in public policies so that the benefits of piped gas can reach more federation units, cities and new consumption segments. “The auctions of natural gas-fired thermal plants will be fundamental to internalize the natural gas networks, creating a strong demand signal for the construction of essential infrastructure. Brazil needs new flow routes and processing units, expand the network of transport pipelines and adopt inflexible thermoelectric plants at the base of the electrical system. exceed 60 million cubic meters/day. This gas can guarantee the country's energy security in the coming decades, says Salomon.

According to Abegás' Strategy and Market director, Marcelo Mendonça, Brazil needs to learn from the lessons of the 2021 drought, reducing its dependence on climate-related sources. “Natural gas is a firm and resilient energy, and much cleaner than other fuels. For this reason, it is the best basis for the sustained growth of new renewables and a bridge to enable the insertion of biomethane in the transport matrix, especially among heavy vehicles such as trucks and buses. Abegás and Abiogás have been working together to create an agenda that creates conditions for Brazil to take advantage of the full potential of biomethane”, says the director of Strategy and Market at Abegás.

Today, the extension of the distribution network spread throughout the country reaches more than 40 thousand kilometers – in 2011, this number was 19,300 kilometers.