Gasmig Opens Public Call to Hire New Natural Gas Supplier and Diversify Internal Fuel Supply

With the Fuel Market Becoming More Open in Brazil, Gasmig is Now Seeking to Diversify Its Internal Supply with New Companies and Has Opened a Public Call to Contract a New Supplier of Natural Gas

For this Thursday, (06/09), Gasmig, the natural gas distributor of the state of Minas Gerais, is looking for a new supplier of natural gas and has a public call open for contracting. The company’s main strategy currently is to diversify the internal fuel supply of the state of Minas Gerais, focusing on reducing resource prices in the region to ensure a more affordable value to the end consumer.

New Public Call from Gasmig Aims for Contract with a Natural Gas Supplier to Diversify the Internal Fuel Supply in the State of Minas Gerais

The natural gas distribution company Gasmig has opened a public call to contract 260 thousand m³/day of natural gas in the short term, under firm and inflexible terms over the coming months. According to the announcement of the public call made by the company, the forecast for the start of fuel supply is set for August 1st and will last until the end of the year, in December, for the internal supply of the state of Minas Gerais. 

The decision for the new contract for the supply of natural gas in the state was based on the high demand currently seen in Minas Gerais, with the need for contracting new volumes becoming increasingly evident. A large part of this high demand in the state is currently due to the freezing of the price of vehicular gas for three months starting in March.

Furthermore, according to Gasmig itself, the number of vehicles converted to CNG in the first four months of the year was 1,212, which represents a 500% increase compared to the third four-month period of last year.

Additionally, the public call also stipulates that the gas molecule must be delivered at the exit zone MG 2, at the delivery point São Brás do Suaçuí II, of the Nova Transportadora do Sudeste (NTS). Another important detail for the contracting of the internal supply of natural gas is that all costs necessary within the transportation chain must already be included in the proposal from the supplying company. This is because Gasmig will not be responsible for the transportation chain, thus reducing logistical issues for the Minas Gerais distributor. 

Company Starts to Diversify the Internal Fuel Supply in the State of Minas Gerais and Now Will Have a New Natural Gas Supplier

The state of Minas Gerais is one of the states that has challenged the new contractual terms for supply from Petrobras, which caused a significant 50% increase in prices during January. Thus, Gasmig is now seeking to diversify its internal fuel supply even further with the opening of the public call to become increasingly less dependent on natural gas supply from the state-owned Petrobras. 

Thus, during April, Gasmig started purchasing natural gas from Galp, the third-largest gas producer in Brazil, according to data from ANP (National Agency of Petroleum).

This was the first internal supply contract for natural gas with a private company made by Gasmig, as until then, the internal supply was entirely handled through a contract with Petrobras.

Now, Gasmig seeks to become increasingly independent regarding fuels in the state of Minas Gerais and also aims to bring greater diversification in prices for a more affordable value to the end consumer, especially concerning natural gas and gasoline, which are becoming increasingly expensive in the region.