After a first half of warnings, the oil sector now sees little risk of diesel supply problems in Brazil in 2022. The assessment is that the market anticipated inventories and managed to enter the fuel import chain.
The ANP (National Agency for Petroleum, Gas and Biofuels) started in November a system for daily monitoring of fuel stocks, but companies in the sector believe that the risk of shortages is low.
“Brazil has really gone to the market and has imported the necessary products”, said the director of Downstream (refining, logistics and distribution of fuels) of the IBP (Brazilian Institute of Oil and Gas), Valéria Lima, after a lecture on the subject at the fair. Rio Oil and Gas, in Rio de Janeiro.
The first warnings about the risk of a shortage of the product in the last months of the year were given after the beginning of the Ukrainian War, which removed Russian production from the market and made international prices soar. Fears were heightened by greater European demand to replace Russian natural gas.
In June, with international quotations at historically high levels, Petrobras even issued an alert to the government on the subject. The assessment is that the practice of lagged prices would prevent imports by the private sector.
About a quarter of the volume of diesel produced in the country is imported. The concern is greater with the S-10 diesel, with lower sulfur content, whose consumption grew 10% in the first half, according to ANP data.
“[O mercado] It’s still difficult, but we don’t have any problems” said Francisco Ganzer, Director of Operations at distributor Ipiranga. “We are looking at inventories for the next 30 to 60 days, but the risk is low”.
Ipiranga and the other two major distributors in the country, RaÃzen and Vibra (formerly BR) have been heavily involved in the import of diesel. Faced with the need to complement Petrobras’ imports, the lagged price is no longer a relevant issue.
With large sales volumes, these companies are able to make a price mix between the products purchased from the state-owned company and the imported ones.
The state-owned company itself expanded its stocks to avoid risks in the period of the year when consumption in Brazil grows to move the agricultural harvest.
Also present at the event, ANP superintendent Rubens Cerqueira Freitas expressed concern about the future service of S-10 diesel and defended investments in the construction of new refineries in the country.
According to him, a new unit could be built in the Midwest region, given the growth in consumption. Brazilian refineries are all close to the coast and agribusiness depends on deliveries by pipeline, train or trucks.
Lima, from the IBP, said he did not believe in the feasibility of a new traditional refinery in the country, as the world encourages the transition to less polluting fuels and the recovery of an investment in a refinery takes time. “The transition window is too short.”
She stated, however, that there is a trend towards investments in new refining models, such as biorefineries, which use vegetable oils to produce fuels. Vibra, for example, announced at the end of last year a partnership with Brasil Biofuels to produce renewable diesel in the Manaus Free Trade Zone.
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
