Bahiagás Signs First Private Contracts With TAG for Natural Gas Transportation Services in the State

The State of Bahia Will Start Receiving Natural Gas from TAG Through Transportation Services That Will Be Offered by the Company to Bahiagás After the Signing of the First Private Contracts for Business Between Transporter and Distributor

The Associated Gas Transporter (TAG) and Bahiagás signed the first private contracts between a transporter and a distributor for natural gas transportation services last Friday (05/13). Thus, the supply of gas in the state of Bahia will be carried out by TAG after the agreement is signed and will be essential for the expansion of private services in the sector, that is, without the involvement of Petrobras in the established business.

First Private Contracts for Natural Gas Transportation Services Signed Between Bahiagás and TAG for the Supply of Reserves in the State of Bahia

Bahiagás announced the signing of contracts with TAG last week, thus taking another step towards the expansion of the oil and gas sector in the state. In addition, these were the first contracts for natural gas transportation services signed privately, that is, without the involvement of Petrobras, only with the participation of a transporter and a distributor operating in the private sector. 

TAG stated that the agreements signed with Bahiagás aim at the transportation of natural gas for the supply of the state of Bahia regarding the fuel, essential for the entire productive and commercial chain. Furthermore, the companies announced that the contracts have a total exit volume of 1.3 million m³/day, with a validity from May 9 to December 31, for the arrival of natural gas from Galp and PetroRecôncavo to the Bahia market. Thus, the state will be supplied through TAG’s services for natural gas transportation. 

And, with the finalization of contracts with Bahiagás for natural gas transportation services in the state, TAG is moving forward to expand its portfolio in 2022. The company has now closed 32 signed contracts that together account for 20% of the company’s transportation network capacity. Thus, the agreements with Bahiagás were essential for 2022 to start with new business growth projections for the remaining months. 

Companies Celebrate Agreements for Natural Gas Transportation Services and Comment on Growth Prospects for 2022

The contracts signed between TAG and Bahiagás have opened the door to much more attractive future prospects for 2022. This is because Bahiagás has already been in a growth trend in recent months and has signed contracts with Shell, Galp, and Equinor, winners of a public call. Now, with the start of the first private natural gas transportation service contracts, the company can further diversify its portfolio.

In addition, TAG’s commercial and regulatory director, Ovidio Quintana, commented on the importance of the agreements between the company and Bahiagás for 2022 and stated that the “agreement signed with Bahiagás is aligned with the best use of the entry and exit transportation contracting model, ensuring the optimization of the distributor’s portfolio and greater liquidity for contracting the gas molecule in favor of its clients.”

Finally, Bahiagás stated that, with the agreements signed with TAG, more than 70% of the energy acquired by the company in 2022 will be supplied by new suppliers, with about 26% coming from the onshore sector in Bahia, which has been increasingly expanding in recent years.