End of Contract with Petrobras in January 2022 Creates Dispute Between Compass and Potiguar E&P for Gas Supply in Rio Grande do Norte
In Rio Grande do Norte, the gas distributor Potigás has qualified the companies Compass and Potiguar E&P for the proposal negotiation phase of the Coordinated Public Call for Natural Gas Acquisition. Among the various suppliers registered for the selection, the two met the requirements of the announcement and presented the best proposals.
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This is part of the coordinated public call of distributors in the Northeast. Producers, importers, or marketing agents could participate in the bidding.
The public call was launched simultaneously with the concessionaires of the states of Alagoas (Algás), Ceará (Cegás), Pernambuco (Copergás), Rio Grande do Norte (Potigás), and Sergipe (Sergás).
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End of Contract with Petrobras Creates Dispute Between Compass and Potiguar E&P for Gas Supply in Rio Grande do Norte
The current contracts with Petrobras will end in January 2022, requiring the establishment of new agreements, the distributor reported.
Compass is a gas trading subsidiary and energy generation from the Cosan group, which controls Comgás (SP), the largest distributor in the country.
Potiguar E&P, from PetroRecônvaco, operates fields in the Potiguar Basin and estimates that starting from the acquisition of producing assets from Petrobras, it will be possible to increase local gas supply by up to 300,000 m³/day. It depends on access to infrastructure.
Potigás has a 450 km network, serving over 29,000 customers in Greater Natal and Mossoró. It anticipates purchasing up to 236,000 m³/day of gas in a single contract batch.
Ethanol and Gasoline Prices Skyrocket, Petrobras Increases CNG by 39%, and Readjustment May Further Impact Brazilians’ Wallets in the Coming Weeks
Last Monday (5), Petrobras announced a 39% increase in the sale prices of Compressed Natural Gas for distributors. Starting in May, CNG, the main option for drivers who travel many kilometers a day and avoid rising gasoline and ethanol prices, will also impact Brazilians’ wallets; however, even with the adjustment, refueling with Natural Gas will remain advantageous, Copergás claims.
Unlike prices for gasoline, diesel, and GLP (used in gas tanks and kitchens), vehicular gas is adjusted quarterly. The increase in reais per cubic meter will take effect on May 1 and the price will be maintained until the end of July.
Federal Government Approves New Gas Law, Ending Petrobras Monopoly
President Jair Bolsonaro sanctioned the Gas Law this Thursday (8). This law, which is a new gas framework, provides for changes in the natural gas market rules. Following approval, this new law has been one of the federal government’s main plans. Since 2019, the federal government has announced a program to break Petrobras’s monopoly and unlock investments.
Brazil Will Have More Room for Competition, and Gas Prices Should Drop; OnCorp Anticipates R$ 500 Million Investment in LNG
Petrobras recently announced a 39% increase in natural gas prices. As expected, the news was not well received by the Brazilian industry, and solutions to these problems are being sought. Shell was the winner of the public call and will supply domestic natural gas to Copergás next year and throughout 2023.
The Brazilian holding company OnCorp, which has shareholders from the USA, has secured a partnership with Shell to try to associate with LNG. In addition, it is responsible for the chartering of the FSRU regasification vessel for Liquefied Natural Gas, the terminal, and also for the commercialization of Liquefied Natural Gas with other clients.
The LNG will come from the United States, Trinidad and Tobago, and South Africa. The gaseous natural gas, which will be marketed with Copergás , will come from Rio, sourced from Shell’s portfolio, says João Mattos, director of OnCorp and Ongás. OnCorp will invest over R$ 500 million, of which R$ 160 million will be spent on infrastructure and the terminal. João Mattos also emphasized that LNG should bring benefits to the State, such as generating more efficiency for the industry and economy.

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