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Naturgy and Petrobras Reduce Natural Gas Prices in RJ for the Second Time, Boosting Natural Gas Sales and Fuel Consumption Until 2025.
In 2024, the natural gas industry in Rio de Janeiro undergoes a significant transformation. Naturgy and Petrobras announced the second consecutive reduction in the price of the gas molecule. This strategic move aims to boost both the sales and consumption of natural gas and CNG in the state, promoting widespread adoption of these fuels in the context of sustainable growth. The most recent agreement, signed in early January 2024, highlights the companies’ commitment to optimizing the natural gas and CNG market.
With the new pricing policy, the mining sector is poised to benefit. Natural gas, particularly in the form of CNG, is gaining traction as a viable and economical alternative for operations in the extractive industry, given its lower cost and improved energy efficiency. The announcement of the second reduction creates a favorable environment for technological advancements in mining practices while expanding the scope for mineral exploration. This scenario was emphasized during the International Mining Conference in February 2024, focusing on the opportunities that the energy transition provides to the sector.
Impact and Perspectives of the Gas Price Reduction
Since the first reduction at the end of 2023, reports indicate a significant increase in the adoption of gas-based fuels. Petrobras, leading this effort, has been working closely with stakeholders to ensure a continuous increase in the production and distribution of natural gas. This advancement reflects a clear commitment from the parties involved to support the energy transition, mitigating costs and maximizing the economic benefits of price reductions.
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The joint initiative between Naturgy and Petrobras is attracting the attention of major market players, who see this collaboration as a unique opportunity to boost operations. Furthermore, the reduction in gas prices serves as a catalyst for various industries, bringing substantial improvements to production chains seeking cleaner and more accessible energy sources. Forecasts for 2025, announced by the National Agency of Petroleum, reveal continuous growth in the use of natural gas in various industrial applications.
As the market adapts, the expectation is that the use of natural gas will intensify, creating a more sustainable and energy-efficient future. Naturgy plans to continue this trend of lower prices, further consolidating Brazil’s leadership in natural gas usage. By 2025, it is estimated that thousands of additional CNG stations will be operational across the country, strengthening the distribution network and accessibility of this vital fuel.
Sources: National Agency of Petroleum, International Mining Conference, Petrobras, Naturgy.
Approval of New Additives and Impacts on Natural Gas
The new additives are currently under evaluation by the Regulatory Agency (Agenersa). Once approved, they are expected to take effect from January 1, 2025, remaining valid for two years. Naturgy, in search of improvements and negotiations, reached an understanding with Petrobras, resulting in a new reduction in the price of natural gas for the second consecutive year. This is an important milestone, as the state of Rio de Janeiro stands out as a protagonist by being the first to seal a second additive with a lower price for the gas molecule. ‘Thus, the state’s population gains significant advantages,’ emphasizes Kátia Repsold, who serves as the country manager for Naturgy in Brazil. This agreement is the second signed between the companies this year.
Details of the Reduction and Its Impacts on CNG
According to the new rule, when consumption reaches between 60% and 90% of the contracted quantity, the value of the gas molecule is calculated at 11% of Brent price. However, if consumption varies between 90% and 115%, the determined value reduces to 10% of Brent. In the initial agreement formalized in June, there was a reduction in the molecule prices for consumption exceeding 60% of the contracted quantity, with a ceiling of up to 105%. Among the markets benefiting from this advantage, CNG stands out. Currently, Rio de Janeiro leads the sector, accounting for about 1.7 million light vehicles adapted for this type of fuel, and has 700 refueling stations. With the implementation of the new prices, it is expected that distributors and stations will pass the lowered values on to the final consumer, thus promoting an increase in fuel consumption.
Competitive Sales Portfolio and Future Investments
‘The progress in negotiations with Naturgy is solid evidence that Petrobras’s natural gas sales portfolio is becoming, day by day, more attractive and adaptable, allowing adjustments that align with customers’ needs. This fact ensures competitiveness for both the population and the industrial sector,’ says Maurício Tolmasquim, director of Energy Transition and Sustainability at Petrobras. Petrobras estimates to allocate about US$ 8 billion to expand national offerings, with the development of new infrastructures, in individual projects and strategic collaborations. Through these efforts, it is expected that more than 30 MMm³/day of national natural gas will be added to the market over the coming years.
Exploring New Frontiers and Long-Term Sustainability
Simultaneously, the company also plans to invest US$ 7.9 billion in exploring new frontiers. This investment is essential for replenishing current oil and natural gas reserves, ensuring the continuity and sustainability of a natural gas market with high potential for future growth. Such initiatives not only reinforce Petrobras’s position in the natural gas market but also highlight the company’s commitment to innovation and sustainability in fuel operations.
Source: NATURGY Press
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