Brazil could double demand for natural gas vehicles

October 4, 2019. Brazilian development bank BNDES estimates that the consumption of natural gas for vehicles (NGV) could double in the next 5 to 10 years.

Local governments have increased efforts to develop this market, especially in the state of Rio de Janeiro, which accounts for 55% of total demand with 1.3 million users. Some of the incentives studied are the conversion of police cars and municipal and intercity buses.

Such actions must be coordinated between the public and private sectors and BNDES is ready to offer financing to bus companies, infrastructure companies and gas distributors, said André Pompeo, Director of the Maritime, Gas and Oil Sectors of the bank, in an event of the industry held in the state capital.

Studies presented by the energy planning firm EPE at the end of last year show that the NGV will be responsible for supplying only 2% of the country’s total energy demand in the transport sector by 2027. However, Brazil has accelerated its efforts to open the natural gas market to private sector actors, which is expected to help increase competitiveness and reduce gas prices. The NGV accounts for about 9% of Brazil’s total gas consumption, while the average monthly demand was 6 million cubic meters (Mm3) in 2018, according to data from the Abegás distributor association.

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