BRAZIL - GOVERNMENT PLANS INFRASTRUCTURE INVESTMENTS IN THE OIL AND GAS SECTOR
The Minister of Energy, Bento Albuquerque presented the Ten Year Energy Expansion Plan 2029, a planning document prepared annually by the EPE, Empresa de Pesquisa Energetica, a research centre attached to the Ministry of Energy, with the aim of indicating the prospects for expansion of the energy sector over the next decade.
According to the document, investments in energy infrastructure until 2029 could reach 2,300 billion Reais, about 575 billion euros. It is expected that 77.4% will be absorbed by the oil and gas sector, 19.6% will be allocated to the area of generation and transmission of electricity, while the remaining 3% will concern the increase in the supply of biofuels.
In particular, for the oil and gas sector the expectation is that oil production will grow by 70%, from the current 3.27 million barrels/day to 5.54 million barrels/day over a decade, in line with Brazil's ambition to become one of the top five producers in the world. Oil exports should increase by 130%, from 1.5 to 3.4 million barrels/day. Natural gas production is expected to reach 199 million m3/day, an increase of 74% over the current 115 million.
The Plan also indicates that the Internal Energy Supply, necessary to support the economy, will reach 380 million tons of oil equivalent in 2029, with an increase of 2.9% per year. Of this value, renewable sources could contribute 48% in 2029, allowing Brazil to meet its commitments under the Paris Agreement.
As far as electricity transmission is concerned, the expectation is that total investments will reach about 103.7 billion Reais in the decade, of which 73.6 billion in transmission lines and 30.1 billion in other infrastructure works. These investments should allow the construction of 55,800 km of transmission lines.
The document can be found at www.mme.gov.br