Analysis of the Impacts of Small-Scale LNG Projects for Energy Supply of the North Region of Brazil: The Case of Roraima

Abstract

Natural gas is a fossil resource less polluting compared to oil and coal. Despite the large volumes of proven reserves in Brazil, exploration and production are low because of several factors like the lack of infrastructure along several regions of the country, the regulatory model in the consolidation phase, and legal impasses regarding tariffs. In the Brazilian north region, the expansion of the natural gas market is even more complex due to regional specificities both in relation to natural characteristics and the existence of conflicts of interest that impact regional development. However, natural gas has been gaining notoriety over the years, with the existence of large projects that foster the gas market in some states in the region. This article aimed to discuss the impacts of increasing the participation of natural gas in the regional energy matrix through small-scale LNG projects, analyzing the case of the state of Roraima and the impacts of the Azulão-Jaguatirica II Project on this state. As a result, this research presented an evaluation of the existent regulation in Brazilian’s northern states, a bibliometric analysis of natural gas in the Brazilian Amazon which demonstrated how little the topic is covered, and a SWOT matrix about the impacts of natural gas in regional energy supply in order to help future decision-making on the subject.