Brazilian Natural Gas Distributor Eyes Argentina's Gas Market as Petrobras Withdraws

Brazilian Natural Gas Distributor Eyes Argentina’s Gas Market as Petrobras Withdraws

Written by Valdemar Medeiros

Published on 14/10/2020 at 11:38

Compagas de olho no mercado de Gás natural da Argentina

Seja o primeiro a reagir!

Compagas Based in Brazil Eyes Argentina’s Natural Gas Market

Five natural gas distributors in the central-south of Brazil are meeting this week in anticipation of a second public offering in early 2021. Rafael Lamastra, president of the Paraná-based Compagas, spoke to Argus about the outlook for the new offering and the opening for the Brazilian gas market as the state-owned Petrobras retreats.

What Are the Outlooks for the 2021 Joint Public Offering for Natural Gas Supply Contracts After the Initial Offering Failed to Attract New Suppliers?

The first joint public offering of natural gas was not a failure. Together, the five distributors received more than 50 proposals. Compagas alone received 10 proposals, which we narrowed down to a short list of four companies. It would have been a failure if we had not received any proposals.

Many of these natural gas suppliers submitted proposals because they saw potential improvements in the regulatory environment, due to the federal government’s efforts to open the market and the agreement of Petrobras with the antitrust regulator Cade. However, suppliers ended up realizing that not much would change in the short term and ultimately withdrew their offers.

ARTICLE CONTINUES BELOW

What Was the Final Outcome of the Auction?

In the end, only one supplier – Petrobras – secured contracts. We expressed to Minister Bento (of Mines and Energy) and Minister of Economy Paulo Guedes that we regret the failure of the government’s efforts to diversify gas supply and that Petrobras continues to be the dominant player.

Why Do You Believe the Auction Next Year Will Be More Successful?

We expect to see some progress, but the reality is that we do not have LNG terminals, our pipelines do not have much excess capacity, and the natural gas from the offshore pre-salt fields is still not being delivered to southern Brazil.

The pre-salt natural gas was expected to be sold at US $4 / mn Btu, but for now, Petrobras buys or produces all the pre-salt gas that reaches the market and sets the price. However, there have been some positive changes. New technologies have made LNG a possibility, and we have been talking to companies interested in bringing gas from Argentina. The next public offering will give us a better understanding of the new supply landscape.

And What About Bolivian Gas?

Even with Petrobras’ recent announcement to reduce its gas supply contract with Bolivia, we are concerned about the possibility of not having sufficient gas volumes.

Compagas has held discussions with members of the current Bolivian government, and it is possible that some of the gas it currently sells to Argentina may be redirected to Brazil. But we are awaiting the results of the Bolivian election (October 18). Do you expect gas prices to drop? Yes, but it is a slow process and depends on the entry of more suppliers into the market and clear regulations for access to infrastructure. When all the pieces are in place, prices will drop.

But this cannot be done by decree. Although much has already been done, many measures still need to be implemented. But nothing will change overnight.

Brazilian Natural Gas Distributor Eyes Argentina’s Gas Market as Petrobras Withdraws

Compagas Based in Brazil Eyes Argentina’s Natural Gas Market

Read Also

What Are the Outlooks for the 2021 Joint Public Offering for Natural Gas Supply Contracts After the Initial Offering Failed to Attract New Suppliers?

What Was the Final Outcome of the Auction?

Why Do You Believe the Auction Next Year Will Be More Successful?

And What About Bolivian Gas?

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

In the Saudi Arabian desert, the world’s largest green hydrogen plant is 80% complete and will use 4 gigawatts of solar and wind energy to produce 600 tons of clean fuel per day when it opens in 2027.

Driven by the BBB showcase, the Chinese Hatch surges in retail, surpasses the Corolla Cross, and begins to threaten Hyundai and BYD in one of the month’s most unexpected turns.

What once seemed like fiction is beginning to become doctrine: the soldier of the future is being equipped as a walking technological platform, with body sensors, augmented reality, and total integration into digital combat.

The Earth only had supermountains twice in 4.5 billion years, and during both times, life took a giant leap: first, visible organisms emerged, and then came the animals with skeletons during the Cambrian explosion.

The world has been generating 80% of electricity by boiling water for 200 years, but China has just turned on a machine that replaces steam with supercritical CO2 and promises to jump from 33% to 50% efficiency.

At a depth of 914 meters, a team accidentally discovers a pirate ship with cannons, a telescope, and objects from three continents on the seabed, uncovering a mystery that has haunted Europe for centuries.

Brazilian Natural Gas Distributor Eyes Argentina’s Gas Market as Petrobras Withdraws

Compagas Based in Brazil Eyes Argentina’s Natural Gas Market

Read Also

What Are the Outlooks for the 2021 Joint Public Offering for Natural Gas Supply Contracts After the Initial Offering Failed to Attract New Suppliers?

What Was the Final Outcome of the Auction?

Why Do You Believe the Auction Next Year Will Be More Successful?

And What About Bolivian Gas?

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

In the Saudi Arabian desert, the world’s largest green hydrogen plant is 80% complete and will use 4 gigawatts of solar and wind energy to produce 600 tons of clean fuel per day when it opens in 2027.

A Brazilian municipality relies on 97% federal money, has 14 secretariats, 11 councilors, and a budget of R$ 131 million, but only 915 people are formally employed, and no one knows how the other 25,000 live.

Argentina steps on the accelerator to become a power with a $20 billion agreement, immediate release of $1 billion, reserves above $5.5 billion, and a decrease in poverty to 28.2%.

Hong Kong leads the ranking of the most expensive fuel in the world and is suffering from a global crisis.

Giant refrigerator arrives in Ceará with a new factory to slaughter 1,000 cattle per day and promises to shake up the livestock industry in the state.

The delivery person made the first route on Shopee with 114 packages and 63 stops over 23 km: they traveled a short distance but took 7 hours to deliver everything and still don’t know for sure how much they will receive.

Driven by the BBB showcase, the Chinese Hatch surges in retail, surpasses the Corolla Cross, and begins to threaten Hyundai and BYD in one of the month’s most unexpected turns.

What once seemed like fiction is beginning to become doctrine: the soldier of the future is being equipped as a walking technological platform, with body sensors, augmented reality, and total integration into digital combat.

The Earth only had supermountains twice in 4.5 billion years, and during both times, life took a giant leap: first, visible organisms emerged, and then came the animals with skeletons during the Cambrian explosion.

The world has been generating 80% of electricity by boiling water for 200 years, but China has just turned on a machine that replaces steam with supercritical CO2 and promises to jump from 33% to 50% efficiency.

At a depth of 914 meters, a team accidentally discovers a pirate ship with cannons, a telescope, and objects from three continents on the seabed, uncovering a mystery that has haunted Europe for centuries.