OREANDA-NEWS. Brazilian thermal power generation declined by 37.7pc in the first three weeks of March compared with the same period last year, signaling a reduction in LNG imports.

According to the electricity clearing house (CCEE), natural gas-based generation declined by over 50pc during the period, while fuel oil-powered generation plunged by 82pc.

At least three LNG cargoes are due to arrive in Brazil this month. Brazilian state-controlled Petrobras, Brazil's sole LNG importer, received 160,000m' of LNG aboard the Asia Vision tanker from the new Sabine Pass terminal in Louisiana at its Guanabara regasification terminal in Rio de Janeiro state. The vessel departed Guanabara on 17 March and is headed to LNG exporter Trinidad and Tobago.

Local shipping agents confirmed that US firm Excelerate delivered a cargo at Petrobras' Pecem terminal in Ceara state on 2 March. Another cargo aboard the Maran Gas Delphi from Shell-owned BG is scheduled to arrive at Pecem on 31 March.

Aside from the sharp decline in fossil fuel-based generation, biomass power plants generated 20pc less than they did during the same three-week period of 2015.

In February, Brazil's electric sector monitoring committee (CMSE) said it would idle nearly 5,000MW of thermoelectric capacity starting on 1 March, a response to rainfall that is replenishing hydroelectric reservoirs and slower demand, among other factors.

Water levels increased in all four of the country's subsystems in March. Reservoirs in the southeast/center-west subsystem, which holds 70pc of Brazil's hydroelectric capacity, increased by 6.8 percentage points between 1 March and 27 March to 57.7pc of their total capacity, according to the national systems operator (ONS).

An increase in installed capacity also weighed on the CMSE decision. During the first two months of the year, an additional 1,463MW of new capacity has already been added to the system. Most of the new capacity is hydroelectric and wind.

In the first three weeks of March, hydroelectric generation increased by nearly 11pc over the same period of March 2015. During the period, hydroelectric generation represented over 80pc of total electricity output, up 7.8 percentage points from the same period of 2015.

Wind generation increased by over 60pc year-on-year in the first three weeks of March, reflecting more favorable wind conditions and an increase in installed capacity.

After declining steeply in recent months, energy consumption in the first three weeks of March was stable in comparison with the same period 2015.