The increase is the result of a 5.6pc boost in total Brazilian gas production in comparison to June 2020 and a 0.9pc increase from the prior month, preliminary data from Brazil's oil and gas regulator ANP shows.
Total production reached 135mn m³/d in June. The country's record production level set in January 2020 is 138.7mn m³/d.
Natural gas reinjection in June reached 60mn m³/d, 10pc more than the same month in the prior year, and a 0.6pc increase from the month prior. Some natural gas that is produced from oil and gas wells in Brazil is pumped back into the wells to repressure the reservoir and increase future oil production.
Natural gas flaring decreased by 0.1pc in June from a year earlier and rose by 6.1pc compared to May.
As nearly 90pc of Brazilian gas production is associated with oil output, producers may choose to reinject the gas to elevate oil production or because of restrictions in gas processing, transporting or trading. The incentive to reinject should drop when pre-salt flow gas pipeline Rota 3 starts operation, expected this year. The pipeline has a capacity of 20mn m³/d.
