Ultragaz’s Acquisition of Brazil’s Leading Compressed Natural Gas Company Will Contribute to the Diversification of Energy Supply for Industrial Customers.

Ultragaz, a Large Australian Gas Distributor, Has Just Announced It Has Signed an Agreement to Buy the Largest NGV Distributor in Brazil for R$165 Million.

Ultragaz, a company that markets energy solutions to consumers in an environmentally safe and sustainable manner, has just signed a contract to acquire Neogás, the leader in compressed natural gas (CNG) supply in Brazil. Following the recent acquisition of a startup – a platform that allows customers to connect renewable distributed electricity generation to their homes – this is another step towards diversifying its portfolio.

In this cycle of actions, Ultragaz, a company already known for its close relationship with its customers, expands its energy portfolio by acquiring a startup that connects renewable distributed electricity generation to customers.

The acquisition just announced will, this time, increase access and supply of Natural Gas and Biomethane to industrial customers, particularly those far from major distribution networks and pipelines. This will be a new avenue for the company’s advancement, through the expansion of renewable energy supply. Customers are becoming increasingly demanding regarding sustainable work environments.

Ultragaz wishes to connect with the largest producers of biomethane in order to become a pioneer and leader in the distribution of natural gas in Brazil. In addition to helping reduce CO2 emissions, it will also assist in managing efficiency and sustainability. The agreement, valued at R$ 165 million, will give Ultragaz 100% control of Neogás, a pioneer and leader in the distribution of CNG in Brazil.

Six Compression Bases Are Located in the States of São Paulo, Rio de Janeiro, Paraná, and Rio Grande do Sul, and the Company’s Estimated Annual Production Capacity of 100 Million m³ of CNG Is Marketed in 2021.

Ultragaz’s inclusion in the natural gas market will also allow it to address major private customers in the interior of the country, in addition to ensuring Neogás’s entry into the NG sector. Currently, the company serves many industries. It also provides logistical services for natural gas distributors as well as more than 50 gas stations.

According to Tabajara Bertelli, President of Ultragaz, “The arrival of Neogás will bring unique knowledge and operational capacity in CNG, allowing advancements in Biomethane, complementing our portfolio of offerings and driving our customers’ energy transition.”

After the conditions are met, including CADE approval, the companies will continue to operate independently until the transaction is completed. “Ultragaz provides a variety of energy services for industrial customers, adding important competitive advantages from Neogás in solutions,” he says. “This acquisition presents an extraordinary opportunity to support the energy transition in Brazil,” concludes Tabajara Bertelli.

Learn More About Ultragaz

Ultragaz, a company that provides energy solutions for businesses and homes in a safe, efficient, and sustainable manner, is known for its ingenuity in its DNA. It has been in the market for 85 years, providing solutions for a variety of sectors. Aiming to make people’s lives easier, Ultragaz has grown to include over 11 million households and 58 thousand businesses.

It is part of Grupo Ultra, one of Brazil’s largest business conglomerates, operating in fuel distribution (Ipiranga) and in the liquid bulk storage segment (Ultracargo).

Source: FSB Comunicação