The Challenges of Natural Gas Monetization in Brazil

An agenda for the Energy Transition Policy

Abstract

Brazil’s natural gas (NG) industry is characterized by historical subordination on the production side to the policies of the oil sector and, on the demand side, to the policies of the electricity sector. In this context, the best use of Brazilian natural gas reserves requires the combination of public policies towards monetization alternatives other than burning natural gas to generate electricity. Therefore, the objective of this article is to analyze the possibilities of using natural gas in the country, aiming at the best use of Brazilian reserves. From the analysis of the policy mix theory, it is concluded that in Brazil, the industrial sector should be prioritized by energy policy as a vector of demand for the best use of natural gas reserves, especially in the current context of decarbonization of the economy.