Brazil’s Largest Oil Company Fills Its Piggy Bank With Over 2 Billion Reais From the Sale of Gaspetro to Cosan, Operating in the Gas and Energy Segment, Ethanol Production Through Raízen of the Shell Group

The Sale of 51% of the Natural Gas Holding, Gaspetro Confirms That the New CEO is Aligned With the Divestments of the State Oil Company Petrobras

The Brazilian oil giant is shedding its 51% stake in Gaspetro. The major buyer was Cosan, which controls Compass, the largest gas distributor in Brazil. The announcement occurred yesterday, July 28, and the sale will fill Petrobras’s “piggy bank” with more than 2 billion reais.

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Gaspetro holds stakes in 19 gas distributors, which exclusively explore the local services of piped gas distribution in various states of Brazil.

The Cosan Group, for its part, operates not only in the gas and energy segment but also in the production of sugar, ethanol, bioenergy, distribution, and commercialization of fuels through Raízen (a joint venture between Cosan and Shell), in lubricants through Moove, and in logistics through Rumo.

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Mitsui Also Wants to Sell Its 49% Stake in Petrobras’s Subsidiary

Mitsui is a partner of Petrobras, holding a 49% stake in Gaspetro. In November, Valor Econômico reported that the Japanese company is studying the sale of its 49% stake in Petrobras’s subsidiary.

“The closing of the transaction is subject to the fulfillment of precedential conditions, such as approval by the Administrative Council for Economic Defense (CADE). Additionally, until the closing, Petrobras will observe the provisions set out in the shareholder agreements of Gaspetro and the natural gas distributors, including regarding preferences rights, as applicable,” the company informed in a relevant fact.

Cosan also controls Comgás, the largest distributor in the country, which holds one of the state concessions in São Paulo.

Compass Gas Distributor, Part of the Cosan Group, Predicts Infrastructure Expansion in SP

Compass is developing two projects to increase the supply of natural gas, initially focusing on São Paulo: Rota 4, to channel national production from the pre-salt region, and an LNG terminal at the Port of Santos.

The Regasification Terminal of São Paulo, with a regasification capacity of 14 million m³/day, has a total estimated investment of R$ 670 million. The operation start date is forecasted for 2022.

In Rota 4, the company intends to be a minority partner in the gas pipeline. The idea is to construct a gas pipeline of 21 million m³/day, extending 267 km, with an approximate investment of US$ 2 billion, starting in 2024, with operation expected to commence in 2027, including a processing unit (UPGN).

Raízen of the Shell Group Wants to Build Three Ethanol Production Plants Made from Bagasse and Sugar Cane Straw

Raízen, the global giant producer of ethanol in conjunction with Shell, plans to build three more cellulosic ethanol plants — or second-generation. The good news was announced by businessman Rubens Ometto of Cosan last Monday (March 15) during a live session with Valor. 

Cellulosic ethanol is made from bagasse and straw. In Piracicaba (SP), the group already has a plant producing this type of fuel, which, according to the businessman, is in high international demand due to the carbon sequestration it generates.

“We want to build three plants of this size, producing an additional 300 million liters of second-generation alcohol,” revealed Ometto. “Companies like Shell, Exxon-Mobil, Total, all of them have a strong interest in acquiring this ethanol given the carbon sequestration it entails.”

The technology for producing cellulosic ethanol emerged from a partnership between Shell and the Canadian company Logen, specialized in biotechnology. In the last harvest (2019/20), the Piracicaba unit produced 226 liters of ethanol for every ton of dry biomass.