President of the association says that the sector is waiting for the input at competitive prices to invest BRL 70 billion in the sector
The Executive Chairman of Abikin (Brazilian Chemical Industry Association), André Passos, told the Power360 that increasing the supply of natural gas at competitive prices for the industry is one of the best ways to stimulate job creation in the country. According to Passos, the chemical industry alone has investments of R$ 70 billion in new projects if it reaches the necessary target to meet the demands of the sector.
The executive stated that the chemical industry needs 18 million cubic meters of natural gas to unlock these investments and that this need has already burst the industrial sector bubble and has also become a consensus in the federal government. Passos quoted the president Luiz Inacio Lula da Silva (PT) and the Minister of Mines and Energy, Alexandre Silveira (PSD), as two important leaders who understood the importance of increasing the supply of natural gas in Brazil.
“The industry is able to make an investment based on the availability of this gas. In the case of ours, the numbers are already known, there are BRL 70 billion estimated in new investment in our industry”said the executive president of Abiquim.
As anticipated by Power360, Abiquim claims that the country has sufficient natural gas reserves to meet national industrial demands. According to Passos, this is the conclusion of a study carried out in partnership with PUC-RJ (Pontifical Catholic University) and which should be presented publicly on July 19.
Passos urged haste in defining a definitive public policy for this increase in gas supply to the sector. This is because the high costs of raw materials have already caused an idle capacity of 35% in the Brazilian chemical industry and the biggest retraction in 17 years in the demand and sale of products for the national industrial market.
“Having a cheaper raw material, we can immediately mobilize this stopped production capacity”said Passos. “We need gas to start coming in at a competitive price so we don’t stop”he stated.
The president of Abiquim met with the technical team of the Ministry of Mines and Energy on Wednesday (July 5, 2023) and reaffirmed the support of the entire national industry for the “Gás para Empregar” program. He said that there is still no date for the launch of the project, but that the modeling of the program is heading towards the end.
“Now they are studying the technical issue of gas availability, price perspectives”he said. “The current design estimates a gas offered at US$ 7 by PPSA [Pré-Sal Petróleo S.A] and now they are also drawing legal and legal issues”, declared Passos. Here’s the full of the presentation of the 1st design of the program (2.9 MB).
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