Brazil’s primary gas supply rose by 12% in 2025, driven by higher domestic production and reduced hydropower generation, the International Energy Agency (IEA) said in its Global Energy Review 2026.
The IEA said the gains in Brazil contrasted with mixed trends across Central and South America, where overall gas demand remained broadly flat.
“In Brazil, primary gas supply rose by 12% in 2025 on the back of rising domestic gas output and lower hydropower generation. This increase in Brazil was largely offset by declines recorded elsewhere in the region, including Argentina (-2%) and Colombia (-20%) amid improving hydropower output,” the report published in April said.
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The increase came as gas played a greater role in balancing power needs amid lower hydro availability.
The agency said natural gas demand across global markets continued to respond to weather patterns, renewable energy expansion and changes in fuel use within the power sector.
The report noted that in several regions, including parts of Asia, gas demand declined as renewable generation expanded and hydropower improved, reducing reliance on fossil fuel-based power.
“In the Asia Pacific region, Thailand’s natural gas consumption fell by 4% in 2025, primarily driven by steep declines in power sector gas use. Pakistan’s natural gas consumption fell by around 8%, largely driven by weaker gas burn in the power sector amid rapid solar growth,” the IEA report explained.
In contrast, the Middle East posted growth of about 2.5%, supported by “oil-to-gas switching” in electricity generation and expanding gas-intensive industries, according to the IEA.
“Saudi Arabia was the largest contributor to this growth, with the country’s gas consumption rising by around 6% amid stronger gas burn in the power sector,” the report said.
The agency said short-term volatility in gas demand continues to be shaped by structural energy transitions and variable climate conditions across major consuming regions.
Deepwater oil and gas development is expected to remain a major driver of Brazil’s global supply. Petrobras operates 36 of Brazil’s 49 offshore rigs, displaying its dominance in the country’s offshore sector.
Brazil is also the largest floating production, storage and offloading (FPSO) market in the region. About 70% of all newbuild FPSOs contracted in South America over the past five years have been allocated to Brazilian projects.
