Brazilian thermal generation uses less natural gas

Mar 08, 2002 01:00 AM

The use of natural gas to power thermoelectric plants is decreasing in comparison to the use of coal in the South of Brazil. Of the four gas-powered plants planned for the region, only two are under construction. The financial advantages of coal, its cheapness and abundance is the region, are the major attractions for investors. It costs $ 1per Btu as opposed to $ 2.60 per Btu for gas.

Another and greater advantage is the regulation which provides for a minimum payment to coal-powered plants, even when they are not producing, while gas-powered plants have to pay for their supply, even when idle. There is also a lack of sufficient gas supply in the region.
Gas distributors in the region are said to be frustrated by the prospect of reduced demand created by the lack of investment in gas-powered plants. The construction of new plants is an integral part of their plans to build new pipelines.

Source: Jornal do Brasil/SABI
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