Brazil Petrobras mulls 25% increase in gas prices

08 November 2007 19:35  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian state-run natural-gas producer Petroleo Brasileiro (Petrobras) could raise prices 15-25% on average in 2008, according to a company official cited on Thursday in the local press.

Maria das Gracas Foster, head of gas and energy for Petrobras, made the comments in an interview with the Portuguese-language newspaper O Globo.

Brazilian energy demand has risen to the point where natural gas is needed to supply thermal power plants, and Petrobras was forced late last month to reduce deliveries to contracted levels to industrial consumers and residential gas distributors. Deliveries prior to the reduction had been over contracted levels.

The chemical and petrochemical industry in Brazil uses natural gas as a feedstock, but the impact of the cuts has been largely contained and is not currently creating widespread problems for producers, according to a source at the national chemical industry association, Abiquim.

However, Abiquim continues to track the situation, since both natural gas and energy are important feedstock, the source said.

Local producer Bayer was briefly affected by the cut, according to industry sources, but an attempt for comment was not returned by company officials.

Brazilian President Luiz Inacio Lula da Silva opened on Thursday a meeting of the National Energy Policy Council at Petrobras headquarters in Rio de Janeiro, official sources said.

On Wednesday, Lula said Brazil’s energy supply is guaranteed through 2012.

By: John Waggoner
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly