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With a Steady Increase in Natural Gas Prices in Brazil and the Crisis Surrounding the Fuel, Cosan Stated That the New Terminal Located at the Port of Santos Will Be Delivered on Schedule and Will Not Be Influenced by the Current Scenario
Last Monday, (05/16), Cosan informed that the current scenario of rising natural gas prices in the national market will not interfere with the construction project of the new terminal located at the Port of Santos, in São Paulo. Furthermore, the company emphasized that the delivery timeline for the structure will remain 2023 and that the project will continue with its initial planning for completion.
#CSAN3 – Compass, a subsidiary of Cosan, will begin construction of the Regasification Terminal at the Port of Santos, with an estimated investment of R$ 700 million. (BDM Online)
— Filipe Villegas (@FilipeVillegas) August 4, 2021
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Brazil Faces Crisis in Natural Gas Prices, but New Terminal at the Port of Santos Will Not Be Affected by the Current Scenario, Claims Cosan
The Brazilian market is currently experiencing instability after Petrobras announced a new increase in natural gas prices this May, and as a result, various projects in the port and oil industry are at risk. Among them, Cosan’s new terminal at the Port of Santos is one that could potentially be impacted by the current situation, but the company stated that the project is proceeding as planned and will not be affected by the prices.
The São Paulo Regasification Terminal is part of Compass’s expansion plan, a company in the group focused on distribution, infrastructure, marketing, and gas generation, and is expected to be delivered in 2023. Thus, with the current scenario of rising natural gas prices, the stability of deadlines was threatened. However, the president of Cosan confirmed that the final deadline will remain the same and that the terminal at the Port of Santos could be operational as early as next year.
In addition, the company also stated that the new terminal project at the Port of Santos is a structuring initiative that will enable the company, from a long-term perspective, to challenge the current natural gas prices. Moreover, another focus of the project is the diversification of supply and provision for Comgás through a new structure in the region. With this, Cosan emphasizes that the construction plan is progressing full steam ahead and should be accelerated throughout 2022.
Company Emphasizes That Agreements for the New Terminal Project at the Port of Santos Were Made Before the Crisis in Natural Gas Prices
Cosan also took the opportunity to highlight that all agreements made for the lease of the FSRU (floating regasification and storage unit) and for the procurement of natural gas molecules were established before the crisis in fuel prices. Therefore, the project will continue to follow these contracts, even if the national and international markets are experiencing instability regarding the commodity.
Thus, the CEO of Cosan, Luís Henrique Guimarães, emphasized that this position was established earlier and stated that “We have more competitive costs for the construction of the terminal than we would have if we had started now [the project]. Our vision is to maximize returns over several years. We do not foresee any difficulties [in advancing the project], it was a position built before the crisis.”
Finally, he commented on the expectations for the project known as Gaspetro and stated that what Cosan expects from the executive is for the Administrative Council for Economic Defense (Cade) to complete the analysis of the business by July. Thus, Cosan and Compass will proceed with all planning for 2022 as anticipated over the past years.
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