The Next Wave of Natural Gas in Brazil

Brazil began relying on natural gas in the 1950s, but it was not until the 1980s that consumption significantly expanded due to offshore production. Negotiations with Bolivia began in the 1990s but Brazil only won such negotiations in 2010. The second phase of the expansion of natural gas consumption was marked by the connection of the Bolivian city of Santa Cruz de la Serra to Porto Alegre, which passed through five Brazilian states. Due to offshore production, particularly in the Santos Basin, a third expansion phase is currently underway. Developing offshore production policies is therefore a vital requirement for the country, as it could enable a better transition toward energy generation or other common uses of natural gas. State-level regulations are currently the only option, which prevents a wider network of policy implementation. This chapter explores the current third wave of natural gas consumption in Brazil, by looking at the current demand for sustainable natural gas and its management in the Brazilian context, drawing particular attention to the need for a more sustainable industry and the federalization of regulations.