European gas prices rise as temperatures fall

  Natural gas purification is an important step in the use of natural gas. According to the report of Rio de Janeiro on October 12 in the petroleum World Journal, Brazil hopes to develop large natural gas consumers to stabilize its soon to open natural gas market, but this effort is challenged by the process of market opening and slow economic growth. Brazil's natural gas demand is heavily dependent on industrial consumption, and nearly half of the country's demand comes from industry because the country has limited natural gas for heating. However, the Ministry of mining and energy of Brazil said that the demand for industrial natural gas has been stagnant at best, ranging from 40 million to 43 million cubic meters per 2011-2018 years, to 37 million cubic meters per day in 2019, and 36 million cubic meters / day to COVID-19. The proportion of industrial users in the overall economy has also decreased, from 48% of GDP in 1985 to 21% in 2019. Large energy and natural gas consumers have high hopes that the country's natural gas market opened on January 1 will intensify supply competition and eventually reduce prices, thereby increasing natural gas demand. However, according to a recent study by CNI, it may take some time to establish regulation and develop market liquidity. In the first phase of the new market, prices may actually rise as Petrobras declines from its monopoly supplier position. Antonio Souza, an analyst at ofseas consulting company, said that due to the high cost of the country,the industries that need the relevant amount of natural gas and may even turn to natural gas have not been transferred yet. Given Brazil's relatively tepid economic growth rate, it is more difficult for large energy consumers to change their energy use. According to the data of the Institute of geography and statistics IBGE, Brazil's GDP grew by 1.8% in the 12 months ended September 30, lower than the average 6.3% of developing economies predicted by the International Monetary Fund (IMF) or 5.2% predicted by the world bank. Before that, the growth rates in 2018 and 2019 were 1.8% and 1.1% respectively, lagging behind other countries with similar development levels.