Brazil gas and power long-term outlook H2 2018

Dry hydrology, maintenance of Mexilhao platform, lower Bolivian gas flows and a spike of LNG imports were the main themes for Brazil gas market in 2018. However, future story is driven more by new Pre-salt projects entering production such as Buzios, Carcara and BM-C-33, the development of gathering infrastructure beyond Route 3, regulatory changes, renewables ramp-up, new regas terminals and inflexibility in gas fired power plants. In this Southern Cone gas and power Service, we explore these issues that will shape Brazilian gas market in the long-term, check it for more details on: • Our estimates of costs and flows for additional gathering Routes 4 and 5. • The role that Bolivian gas and LNG will play under normal and dry hydrology. • How will evolve the cost of gas supply. • How will be the operation of gas fired power plants with inflexibility. • Future spot prices in a competitive market environment with access to infrastructure.