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Drought is threatening Brazil's agricultural sector
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Turning up the heat on Brazil’s gas reforms

Extreme dry spell is highlighting the need to kickstart the country’s gas liberalisation efforts

Brazil is facing the worst drought in nearly a century, hitting key industrial regions and threatening not only hydroelectric power supply but also the country’s economic powerhouse—the agricultural sector. Brazil’s national grid operator, the ONS, estimates the country’s hydro reservoirs will be depleted to 7.9pc of their capacity by November. To counter the looming crisis and the possibility of blackouts, the government has created a committee to manage hydro reservoirs and authorised dispatch from thermal power plants, including gas, fuel oil and diesel facilities. Heading into next year’s presidential elections, the political implications of regional electricity shortages could be criti



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