According to the Gas Sales and Origination Manager at Shell Energy Brasil, the role of the gas trader is to simplify the market, making it less complex. She highlights the importance of this role for the efficiency and transparency of the sector.
The meeting was attended by the Sales and Gas Origination manager of Shell Energy Brazil, Carolina Bunting, and the Gas Supply and Fx Market from Bahiagás, Makyo Félix.
A epbr magazine, in collaboration with Shell Energy Brazil, organized in November the pioneer Shell Energy Gas Forum, which aimed to share knowledge about the natural gas market and energy with society.
The event addressed the liberalization of the natural gas market, transition to the free market and how consumers can take advantage of natural gas spot market to develop strategies that promote the sustainability of its operations. This was an important moment for new consumers to understand how this market works, the new types of contracts available and the benefits they can add to their businesses. **An opportunity for new consumers to understand how this market works, the new types of contracts available and the benefits they can bring to their business.**
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Challenges for the Development of Fx Market de Biomethane in Brazil
The executive identifies two main difficulties in advancing the market de biomethane in Brazil. The first challenge is related to logistics – how to connect, in an economically viable way, the different sources of biomethane to consumption centers and the gas pipeline network.
“A second point is to determine the value do biomethane No. market Brazilian. Currently, the market seeks to differentiate between natural gas and the biomethane. Therefore, it is necessary to promote the development of a standard for biomethane, as well as product recognition. And, for this, it is crucial to deal with regulatory issues”, commented the executive.
The recognition of value do biomethane and the development of standards are key aspects to boost the market in Brazil.
"The natural gas Renewable energy is a field in which there has already been considerable investment in other regions of the world, particularly in Europe. We also see enormous potential in Brazil”, said Carolina Bunting.
Carolina Bunting highlighted that Shell has been careful when evaluating business possibilities in this sector.
“There are challenges to be overcome, and that is why we are being very careful in relation to the type of product we seek to acquire and the type of project we intend to make viable. We are willing to establish partnerships advantages with producers, in order to create a more competitive and alternative product for the end customer. **Ultimately, they are looking for solutions that help reduce emissions in an economical way**”, he highlighted.
“Shell has shown interest in biomethane, we are negotiating with producers and are also in contact with potential customers interested in purchasing and using this gas to reduce their emissions carbon,” said Carolina Bunting.
She highlights that the company already has activities in this sector in other countries. This year, it completed the acquisition of Nature Energy Biogas, the largest producer of biomethane from Europe.
“We need to find a mechanism to stabilize the market and avoid unnecessary costs, in addition to maintaining the necessary competitiveness”, said Makyo.
Shell has expressed its interest in expanding its operations to include the trading of biomethane No. market Brazilian. Its objective is to incorporate renewable gas into its product portfolio. Shell Energy Brazil, in response to growing demand for decarbonization among customers.
New strategies for market of gas, says Makyo Félix, from Bahiagás
Makyo Félix, responsible for the Gas Supply and Fx Market in Bahiagás, highlighted the importance of offering more options and flexibility our contracts for consumers.
According to the manager, the tendency is for contracts become more malleable, allowing the parties involved to acquire gas more efficiently. Furthermore, he emphasized the possibility that, in the future, the opposite could happen: selling surplus gas to the marketer or charger, aiming to balance the market. **The objective is to seek a balance, since a positive balance for one may represent a negative balance for another**.
“Shell’s responsibility is also to assist the consumer in this procedure, to clarify how the market and assist with insertion into the market throughout Brazil. It is not necessary to limit yourself to one state due to certain restrictions. We are operating in several Brazilian states, we have this knowledge, we can guide the consumer and really explain what this procedure will be like”, he concluded.
According to her, the company has used a contract model more adaptable, the Master Sales Agreement (MSA), to meet changes in consumption throughout the year without imposing penalties.
“Sometimes, the client who works in the market in Minas Gerais it wants to operate in the same way in Espírito Santo and is unable to do so. This creates a lot of difficulty and disappointment for the customer, who looks for a solution that adapts to different situations and does not find this option”, explained the executive.
Carolina Bunting stated that the main function of a marketer is to create market and increase liquidity. Therefore, the objective would be to solve the challenges, risks and demands of both customers and producers.
Some producers are afraid of joining the market Brazilian due to complexity, high fixed costs and management difficulties. Likewise, customers understand that there will always be unforeseen events and that needs may arise that a more conventional contract, such as the GSA [Gas Supply Agreement], may not be able to meet.
Reducing the complexity do market of gas in Brazil
According to Carolina Bunting, Gas Sales and Origination Manager at Shell Energy Brazil, the primary role of marketers of gas in Brazil is to simplify the market. This was one of the points highlighted during the first Shell Energy Gas Forum, a partnership between the epbr agency and Shell Energy Brazil (see full text above).
Carolina explained that the consumers may face difficulties in dealing with the various rules present in each state, and find options that meet your demands with flexibility, without running the risk of facing future fines or sanctions. Shell Energy is able to help customers navigate these rules and look for a combination of contracts that meets each person’s needs.
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Source: EPBR