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The compressed natural gas company CDGN signed a contract with the Bolivian YPFB to import natural gas in Brazil and sell the fuel in the free market model in the regions served by Gasbol.
Trade relations between Brazil and Bolivia are getting closer this Wednesday (20/07), since the compressed natural gas company CDGN signed a contract with YPFB for the supply and import of fuel in the national territory. In this way, the Brazilian company seeks to expand its presence in the free market of fuels and intends to sign contracts for the distribution of natural gas in the regions served by the Gasbol gas pipeline, one of the main ones in the country.
CDGN advances in its search for presence in the free fuel market and signs a contract with YPFB for the import of natural gas in Brazil
The Brazilian company CDGN, a subsidiary of the MDC group that operates in the commercialization of compressed natural gas, has just announced another big step towards its expansion in the national fuel market and signed a contract with YPFB for the import of natural gas.
The contract foresees the receipt of up to 4 million m³/day from the neighboring country and its main objective is to establish internal commercialization in the free market model in Brazil.
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Furthermore, the agreement signed between the fuel companies will be based on an interruptible model, that is, one that can be temporarily interrupted due to problems with the natural gas supplier.
This is a very common move among companies that have great flexibility with regard to these fuels and contributes to closer commercial relations. This happens because the supply company will not have to go through supply pressure in the event of a lack of natural gas, for example.
With completion scheduled for the end of 2023, the natural gas import contract between CDGN and YPFB plans to serve the South, Southeast and Midwest regions, served by the Bolivia-Brazil Gas Pipeline (Gasbol) — which has a capacity of 30 million m³/day and operates with idleness.
Thus, CDGN and MDC expand the modes of commercialization of compressed natural gas in Brazil and open doors for growth in the free fuel market during the coming months, until the end of the contract.
Fuel companies are getting closer to Bolivia seeking to tighten contracts to import fuel from Brazil
YPFB continues to advance in the Brazilian fuel market in recent weeks, as the contract with CDGN is not the first to be signed with the Bolivian company. This is because, during the month of March of this year, the foreign company closed a two-year agreement for the sale of up to 2,2 million m³/day in the interruptible mode for Tradener.
In addition, in June, the Brazilian natural gas trader finalized the pilot project for the supply of Bolivian natural gas to Compagas, a piped gas distributor in Paraná, and delivered a total daily volume of 10 m³/day to the distributor of natural gas.
In this way, the free fuel market in Brazil becomes increasingly broad and flexible, with more viable opportunities for companies. client that seek to operate in this segment.
In addition, the strengthening of relations between national fuel companies that operate in the free market and YPFB comes after an instability in the relationship between the Bolivian company and the state-owned Petrobras, since Bolivia reduced gas shipments to the company by 30%, as of May, after committing to increase exports to Argentina until September.
