Houston — Since the start of June, a period that is considered the dry season, the US has been the main LNG supplier to Brazil, accounting for 60% of the shipments to South America's largest economy, according to S&P Global Platts Analytics data.
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RegistroBrazil has imported the equivalent of 41 Bcf of natural gas since the beginning of June, of which 24 Bcf was US-sourced, as of Tuesday, the data show.
The remaining 17 Bcf was split between five other countries - Equatorial Guinea, Trinidad & Tobago, Cameroon, Norway and Nigeria.
In the same period in 2018, the US exported the equivalent of 21.7 Bcf to Brazil, according to Platts Analytics. Brazil imported the equivalent of 57.86 Bcf of gas as LNG in the three months that started June 1, 2018, the data show.
During the ongoing Southern Hemisphere winter, Brazil's Southeast-Midwest hydro reserves have dropped 7 percentage points over the last three months to 40.4% of capacity on Tuesday, according to Brazil's National Electric System Operator (ONS).
The dry season and lower global LNG prices contributed to an increase in LNG imports at the start of the winter.
Brazil's regasification level in June increased due to higher imports of LNG on the back of lower LNG prices, according to Brazil's Ministry of Mines and Energy. Brazil's May imports - all from the US - totaled 9.3 Bcf, according to Platts Analytics.
"The LNG price in June dropped to $4.60/MMBtu from $7.20/MMBtu in May on an FOB basis. This price decrease has not happened since 1986," the government said.
At least two LNG tankers are set to arrive in Brazil between August 28 and September 9, one from Norway and the other from Nigeria, according to Platts Analytics.
-- Ingrid Furtado, ingrid.furtado@spglobal.com
-- Edited by Keiron Greenhalgh, keiron.greenhalgh@spglobal.com
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