Gaspetro Sold to Cosan Group With Approval from the Administrative Council for Economic Defense

Gaspetro, Which Has Stake in 18 State Natural Gas Companies, Was Purchased by Cosan, with Approval from Cade

The Administrative Council for Economic Defense, Cade, authorized on Wednesday, 22, the sale of Petrobras’s stake in Gaspetro. The 51% share of the state-owned company was acquired by Compass, which is part of the Cosan group, in July 2021 for R$ 2.03 billion. Gaspetro holds stakes in 18 state natural gas companies and is owned by Petrobras (51%) and Mitsui Gas and Energy (49%).

In essence, the purchase enables Cosan’s entry into the gas sector in 18 states. However, to simplify the court’s decision, Compass committed to transferring its acquired stake in 12 companies. Should the divestment not occur, the board members stated they might appeal the decision, as it was made based on information provided by Compass of Cosan.

The Cade law allows for the annulment of decisions made based on “false or misleading information.” Gas is a natural monopoly since the infrastructure costs do not allow for competition. Following its announcement, the transaction involving Gaspetro, Cosan, and Cade’s approval raised competitive issues. This is because Cosan already owns the largest natural gas distributor in the country, known as Comgás, in São Paulo. At the beginning of 2022, it acquired a share of Sulgás, the distributor in Rio Grande do Sul, whose other shareholder is Gaspetro.

Recomendado para você

Oil and Gas

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

1

Compass Has Already Signed Contracts with Numerous State Distributors

Cosan’s subsidiary, Compass, operates in the consumption of natural gas and energy and has already signed contracts with several state distributors of gas to market the product, although it has not yet started sales. The Cosan group also plans to build a LNG (liquefied natural gas) regasification facility in the Port of Santos. The product would be marketed and transported via a pipeline constructed by the Cosan group and sold to Comgás, both part of Cosan’s economic group.

The pipeline, named Subida da Serra, is under scrutiny by gas producers and consumers, as well as the National Agency of Petroleum, Natural Gas and Biofuels, ANP, which claims to have the authority to approve or deny it. The agency of the State of São Paulo had validated the construction of the infrastructure as a distribution pipeline.

ANP Requested Rejection of the Transaction Involving Cosan and Gaspetro

Although Cosan’s expansion in the gas market is on the rise, with the sale of Gaspetro approved in a summary procedure by the General Superintendence of Cade, the ANP had requested that the council reject the transaction involving the companies Gaspetro and Cosan. The ANP filed an appeal, and the deal was brought before the Cade Tribunal, which decided to approve it on Wednesday the 22nd.

About the Cosan Group

Cosan, created from a joint venture between Cosan and Shell, Raízen is an integrated energy company, which is a benchmark in sugar-ethanol production and is also one of the largest companies in the fuel distribution and marketing sector in the country, in addition to being one of the four largest companies by profit in Brazil.

Compass Gas and Energy, a subsidiary of Cosan that operates and invests in four business segments (infrastructure, distribution, marketing, and trading). The company establishes itself as a complementary platform for activities to explore opportunities in the natural gas and energy sector in the country and already has in its portfolio the largest piped natural gas company in the country, Comgás.