Brazil’s natural gas demand is poised for a significant rise following the commencement of operations at the GNA II thermal power plant, the country’s largest gas-fired facility to date. Operational since May 31, 2025, the plant is projected to increase daily gas consumption for power generation by at least 6 million cubic meters from July through November. This represents a 23% increase compared to the same period last year.
Located in São João da Barra, Rio de Janeiro, GNA II is a part of the broader Gas Natural Açu (GNA) complex, which includes the earlier GNA I plant (1.3 GW) and a large LNG regasification terminal. With the addition of GNA II’s 1.7 gigawatts (GW) of capacity, GNA now manages a total of 3 GW in operational power, making it Brazil’s fourth-largest thermal generator and accounting for about 8% of the country’s total gas-fired installed capacity.
High-Efficiency Design and Seasonal Strategy
Awarded through Brazil’s 2017 A-6 power auction, GNA II operates with a combined-cycle configuration. The plant uses three gas turbines and one steam turbine, allowing for greater energy efficiency. The adjoining LNG regasification terminal has a processing capacity of 21 million cubic meters per day, providing the plant with a steady and flexible gas supply, which is especially vital during dry months when hydroelectric output is lower.
The plant is expected to consume around 6.4 MMcmd of natural gas between July and October, and roughly 5 MMcmd in November. Due to its low Variable Unit Cost (CVU), GNA II ranks favorably on Brazil’s merit order curve, making it a preferred dispatch choice when hydroelectric reservoirs run low. In fact, with Brazil’s average thermal power gas consumption standing at 26 MMcmd last year, the operation of GNA II alone may contribute nearly a quarter of total Brazil’s natural gas demand during the dry season.
Mitigating Seasonal Shortfalls Amid Infrastructure Gaps
Brazil’s energy landscape is heavily reliant on hydroelectric power, which accounts for 42% of installed capacity and 55% of total electricity generation. This dependency leads to seasonal imbalances, particularly during the dry season when hydroelectric reservoirs are depleted. During such times, fossil fuel plants, especially gas-fired facilities, are critical in maintaining grid reliability and balancing intermittent solar and wind energy supplies.
Despite its strategic role, GNA II faces a challenge, most notably its lack of connection to Brazil’s domestic gas transportation grid. This limits the plant’s ability to access lower-cost, locally produced natural gas. However, its integration with the LNG terminal offers some flexibility and pricing security. LNG supply is indexed to global prices, and the plant’s variable costs are passed on to consumers through regulated tariffs.
Overall, the GNA II plant marks a vital step in strengthening Brazil’s gas-fired power sector. Its high efficiency, capacity to meet seasonal Brazil’s natural gas demand, and strategic integration with LNG infrastructure position it as a key player in ensuring energy reliability amid growing electricity needs.
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