For the first time since 2002 Brazil may be forced to introduce power rationing, as high temperatures and a relentless drought in the Northeast have severely diminished reservoir levels. President Dilma Rousseff has called an emergency meeting to discuss energy shortages on Wednesday in Brasília, reported Folha de São Paulo.
Following power cuts last month that plunged large swathes of the country into darkness, including Rio de Janeiro’s airports, Rousseff sought to allay fears over energy shortages, dismissing the risk of power rationing as “ridiculous.”
Yet surging consumption during a particularly hot and dry December has put extra strain on dwindling resources.
The newest addition to Rio de Janeiro state’s Superporto do Açu will be where Norwegian company Subsea 7 plans to begin manufacturing oil and gas pipelines in 2014. The R$21 million-per-year lease was signed following Subsea 7’s withdrawal from plans to build the project in the southeastern state of Paraná, where difficulties in obtaining an environmental license blocked the company’s first choice of location.
Shares in Eike Batista’s oil and gas company, OGX Petroleo & Gas Participacoes (OGX), rebounded Monday after a rollercoaster week saw them drop by forty percent last Wednesday and Thursday, temporarily knocking some US$4 billion off the Brazilian billionaire’s personal fortune, according to calculations by Bloomberg.