A-6 Energy Auction Shows Imetame and Eneva Standing Out Against Oil Companies’ Failure

Energy Auction Showed Victory of Onshore Producers Over Offshore Giants That Could Not Find Consumers for Their Natural Gas Production

One day before the A-6 energy auction that took place on 10/18, Click Petroleum and Gas reported that large oil and gas companies would participate in the auction, seeking a consumer for their pre-salt natural gas production.
Imetame and Eneva, however, with their onshore gas production, won the projects and left giants like Petrobras and Shell, the first and second largest natural gas producers in the country, without major contracted projects.

The A-6 energy auction ended with contracts representing an installed capacity of 2,979 megawatts (MW), with deliveries starting in six years.

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Of the three gas-fired thermal power plants contracted in A-6, two were through the “gas-to-wire” model (known as the construction of thermal plants near the gas production well).
The three projects total 734 MW, about 25% of the total power negotiated in the auction, in addition to the thermal plants Parnaíba II (92 MW), of Eneva, and Prosperidade II (37 MW), of Imetame.

The third gas plant, the Novo Tempo Barcarena project (604 MW) will operate with liquefied natural gas (LNG) loads and belongs to Golar Power.
Eneva is the former MPX (from Eike Batista’s conglomerate), and five years ago used the “gas-to-wire” model for the first time in the Parnaíba Basin in Maranhão.

Today, Eneva is the largest private thermal power generator in Brazil with 1,400 MW of installed capacity in gas plants, and is the third largest gas producer in the country, behind Petrobras and Shell.
Eneva’s model inspired Imetame, which adapted the “gas-to-wire” model to a smaller scale in its productions in the Recôncavo Basin, so much so that last year it inaugurated the Prosperidade plant (28 MW) in Camaçari (BA) and established itself as one of the main onshore gas producers.

The Oil Companies

The failure of the oil companies led experts to claim that “the monetization of pre-salt natural gas may be more complicated than assumed.”
Shell failed in its attempt to negotiate the expansion project of the Marlim Azul thermal power plant (565 MW) in Macaé (RJ), and Petrobras also could not sell its pre-salt natural gas production to the new plants.

Only ExxonMobil managed to secure a contract in the energy auction. The company will supply imported LNG to the Barcarena plant.

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