THE CHALLENGES OF THE NATURAL GAS MARKET IN BRAZIL AS A POTENTIAL INDUCER OF THE ENERGY TRANSITION AND SOUTH AMERICAN INTEGRATION

THE CHALLENGES OF THE NATURAL GAS MARKET IN BRAZIL AS A POTENTIAL INDUCER OF THE ENERGY TRANSITION AND SOUTH AMERICAN INTEGRATION

Natural gas has a dual role in the energy transition and regional energy integration. In South America, the gas market is expected to be more prominent, taking advantage of the 7.8 billion cubic meters in reserves and existing bilateral relations to connect markets, although the role of gas in the t...

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Bibliographic Details
Published in:Revista Tempo do mundo no. 32; pp. 97 - 132
Main Authors: João Victor Marques Cardoso, Luiza Gomes Guitarrari, Ana Beatriz Soares Aguiar, Izabella Barbarini Baptista
Format: Journal Article
Language:English
Published: Instituto de Pesquisa Econômica Aplicada 01-08-2023
Subjects:
brazil
energy transition
natural gas
regional integration
south america
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Summary:Natural gas has a dual role in the energy transition and regional energy integration. In South America, the gas market is expected to be more prominent, taking advantage of the 7.8 billion cubic meters in reserves and existing bilateral relations to connect markets, although the role of gas in the transition and integration specifically in the region is not equal to the rest of the world. In Brazil, the gas market is witnessing changes following the New Gas Law, aiming to transform a vertically integrated market into a competitive market, taking advantage of the growth in Brazilian production and the prospect of greater supply available in the coming years. In this context, this article questions the potential role of gas as a driver of the energy transition and integration in South America, especially given the changes underway in the Brazilian gas market. The objective is to explore how gas can be a driver of the energy transition and South American integration from a Brazilian perspective. The main results elucidate that the supply and demand conditions in the Brazilian gas market and the regulatory updates for its opening do not attribute an explicit role to this energy source in the transition to a low-carbon economy and are not supported by regional integration, however, it could be a facilitator of these processes.
ISSN:2176-7025
2675-150X
DOI:10.38116/rtm32art3