03:52 PM EDT, 08/28/2024 (MT Newswires) -- Petrobras (PBR) plans to cut natural gas reinjection to align with the Brazilian government's push for increased fuel supplies, Bloomberg reported Wednesday.

A recent decree allows Brazil's oil regulator, ANP, to set limits on the amount of natural gas that oil producers reinject into reservoirs, Bloomberg said, adding that over 90% of Brazil's oil and gas is produced offshore, the cost of building pipelines to transport gas to land is substantial.

Petrobras will adjust its strategy and use new platforms at the Buzios field to set up a gas hub due to some existing platforms' limitations in handling gas transportation, Petrobras Chief Executive Magda Chambriard told reporters in Brasilia, Bloomberg said.

Brazilian President Luiz Inacio Lula da Silva's push for cheaper natural gas is raising concerns about interventionist policies that might deter oil investments, but Petrobras vows to improve gas supply at affordable prices to boost industrial activity, the report said.

Petrobras didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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