NTS Closes Eight Contracts With Oil Companies Galp and Shell in the Natural Gas Market

The Natural Gas Carrier Announced a Great Start to the Year with Eight Firm Contracts Signed by Oil Companies. NTS is Already Working with Interruptible Contracts with Galp and Shell, But Now Invests in Simplifying Its Agreements to Expand Operations.

The Nova Transportadora do Sudeste (NTS) is, this Wednesday, (01/25), celebrating a great start to 2023 regarding its operations. The company has signed eight new firm contracts with the oil companies Shell and Galp for operations in the natural gas sector. The agreements ensure more practicality and security in the services provided by the carrier to both companies. The oil companies were already operating under interruptible contracts in 2022 but decided to take a different path now.

Galp and Shell Close Eight New Firm Contracts in the Natural Gas Market and Ensure Nova Transportadora do Sudeste a Extraordinary Start to the Year

The national natural gas market continues to be heated at the start of 2023, with new projects underway across the country.

NTS is aiming for expansive growth in 2023 and has announced major new acquisitions for its business portfolio in Brazil.

It has signed a total of eight firm contracts with the oil companies Shell and Galp for the next 12 months, thereby ensuring a strong presence in the sector.

These are the first firm contracts signed with carriers other than Petrobras, demonstrating a true emancipation from the oil company.

Shell and Galp were already operating under interruptible contracts in 2022, but now have decided to take a different path with the firm contracts closed with the carrier.

Galp has contracted natural gas entry capacity in Caraguatatuba (SP) and at the Cabiúnas Terminal (Tecab), in Macaé (RJ).

In addition, it closed firm contracts for exit capacity in Minas Gerais and at Replan (SP), in the interconnection with the network of the Brazilian Pipeline Transporter Bolivia-Brazil (TBG).

On the other hand, the oil company Shell contracted entry capacity in Caraguatatuba and Tecab.

“These are the first firm contracts signed with new carriers at NTS. With announced investments of R$ 12 billion in its strategic plan, NTS aims to increase the flexibility of its network and the transport capacity offered to carriers,” highlights NTS Commercial Director Helder Ferraz.

NTS Intends to Focus on Short-Term Firm Contracts, Like Those with Shell and Galp, to Facilitate New Business in the Natural Gas Market

NTS wants to concentrate on offering short-term contracts, in a more simplified manner, thereby ensuring greater ease for its operations in the natural gas market.

The agreements with Shell and Galp mark a good start to the year focused on this modality.

The CEO of Shell Energy Brazil, Christian Iturri, commented on the new agreements: “This new contract with NTS reinforces Shell Energy Brazil’s commitment to offering dynamic, competitive, and accessible solutions for cleaner energy.”

These agreements are extraordinary and were closed through the POC (the Capacity Offering Portal), without the need for a public call.

In addition to NTS, other fuel carriers are advocating for the end of the public call requirement for closing contracts, as this ensures more speed in agreements.

They are already offering clients products through POC, without the need for public calls, such as short-term, interruptible, or extraordinary contracts.

Currently, the National Agency of Petroleum, Natural Gas and Biofuels (ANP) is evaluating the possibility of contracts without the need for public calls.

The new firm contracts of NTS with Shell and Galp ensure an even more prosperous future for the next 12 months in the natural gas market.