Natural gas price increase is seen as yet another reason for increased competition and consequent price drop in the future
Petrobras recently announced a 39% increase in the price of natural gas. As expected, the news was not very well received by the Brazilian industry and solutions for these problems in the future are being wanted. Shell was the winner of the public call and will supply domestic natural gas to Copergás next year and also throughout 2023.
The Brazilian holding company OnCorp, which has shareholders from the USA, managed to partner with Shell to try to associate itself with LNG. In addition, it is responsible for chartering the FSRU regasification vessel for Liquefied Natural Gas, for the terminal and also for commercialization of Liquefied Natural Gas with other customers.
The LNG will come from the United States, Trinidad and Tobago, South Africa. Gaseous natural gas, which will be sold with Copergas will come from Rio, coming from the portfolio. from Shell, says João Mattos, director of OnCorp and Ongás. OnCorp will invest more than R$500 million, of which R$160 million will be spent on infrastructure and the terminal. João Mattos also pointed out that LNG should bring benefits to the STATUS, how to generate more efficiency for industry and the economy.
"This initiative has everything to be a watershed for the State, as it will turn Pernambuco into an important LNG Hub and, at the same time, will encourage the attraction of new investments for the State, considering the new supply of Gas, as a result of the Terminal.'' declared the executive.
Electric power generation projects may benefit from the supply of natural gas, taking into account the energy auctions that should take place next year. As a result, natural gas must be distributed to the northeast region, as provided for in the Copergás contract. There are 750 m3 per day in 22 and 1 million m3 per day throughout 2023.
Furthermore, LNG is good for the environment. It is less polluting compared to other fuels: ”Our group was born from expertise in power generation, with more than 500MW installed in the country and in Argentina. Therefore, we know that Natural Gas is the transitional fuel and plays an important role in maintaining the reliability of the country's energy matrix, at a lower cost to the System and the Environment. Our Group even has a 300 MW thermal project, powered by Natural Gas, already registered for the next Auction, located in the Suape Complex”, said João Mattos.
Meanwhile, President Jair Bolsonaro sanctioned the new regulatory framework for natural gas without vetoes. The new law guarantees the unbundling and independence between companies that work with distribution, production and transport as a measure to maintain competitiveness. In addition, the new text has mechanisms to deconcentrate the gas market in Brazil. Today, Petrobras participates in 100% of import projects and 80% of production projects in the country.
The economy ministry pointed out that the increase in competition with the new rules will cause the price of gas in the country to fall. The bill was approved in December, just before the parliamentary recess.
