Portuguese 
English 
Spanish 
3 min of reading 
The Oil and Gas Producer PetroReconcavo Signed a 10-Year Natural Gas Supply Contract with the Distributor Sergas.
PetroReconcavo (RECV3) signed a contract for the supply of natural gas to Sergas, a natural gas distribution company (Sergipe Gás S/A), for a period of 10 years. The contract provides for different supply modalities of the inputs. In the “firm” modality, the oil company is expected to deliver 50,000 m³/day of natural gas in the second half of 2023 and 100,000 m³/day of natural gas from 2024 to 2032.
A Giant in the Oil and Gas Sector, PetroReconcavo is One of the Largest Independent Operators in Brazil
The Contract Between the Companies Has Different Gas Supply Modalities
Rafael Cunha, CFO of PetroReconcavo, explains: “This is another important step in our strategy to become the largest player in natural gas in the Northeast. We already supply the input to distributors in major states, such as Potigás, PBGás, Cegás, BahiaGás. The contract signed with Sergas represents our delivery capacity, the diversification of our customer base, and the expansion of our portfolio”.
In the “interruptible” and “flexible” modalities, PetroReconcavo has committed to supply more than agreed, with the caveat that there is demand from Sergas and commercial availability from the oil company.
-
Petrobras evaluates suspension of sales to distributors and considers canceling the cooking gas auction following guidelines from the Federal Government.
-
Lula reveals a masterstroke by Petrobras to undo a deal made by Bolsonaro, which involves the return of an important refinery that currently produces less than half of what was expected and makes Brazil dependent on international diesel.
-
A study confirms that the natural gas sector will reduce greenhouse gas emissions in Brazil by 0.5% and accelerate the energy transition by 2026.
-
Petrobras implements a severe adjustment and confirms a 55% increase in the price of aviation kerosene with a proposal for installment payments for the companies.
In these modalities, supply and withdrawal commitments are established only by prior agreement between the parties involved, provided there is demand from the distributor (PetroReconcavo) and availability from the destination company (Sergas).
The contract value will be defined by the total sum of the transportation cost plus the molecule portion. The latter will be an amount of 13.6% of the Brent oil quotation for 2023 and 2024, and 12.6% of the quotation between 2025 and 2032.
The minimum and maximum payment terms for supply and sale were not disclosed, but they will be adjusted according to the CPI (Consumer Price Index), one of the main indicators of American inflation, which measures price variation from the consumer’s perspective.
According to PetroReconcavo, “the start of the supply is conditioned on the signing of a natural gas transportation contract between Sergas and TAG, corresponding to the exits from the delivery points determined by the buyer—this contract is currently under negotiation.”
Get to Know PetroReconcavo
The independent onshore oil and gas producer has 22 years of experience in the segment, focusing on mature onshore fields in Brazil.
The company’s reputation is respected by customers, regulatory agencies, suppliers, and employees due to its experienced team, composed of specialized professionals and founding shareholders with extensive experience in the segment.
The company’s portfolio includes oil and natural gas concessions, where they operate as concessionaires and/or operators. In fields that are declining, the company has developed a production revitalization system.
The company’s knowledge in the field is associated with high cost performance and operational efficiency, implementing secondary recovery mechanisms through water injection, vertical integration of services, and other activities.
Seja o primeiro a reagir!