PetroReconcavo Signs Contract With Cegás for Natural Gas Sales, and Distributor Invests in Fuel Supply Diversification

The Cearense Natural Gas Distribution Company Cegás Now Invests in the Search for New Fuel Suppliers in the Region and Has Signed a Contract with PetroReconcavo for the Sale of the Product Over the Coming Months.

Through its subsidiaries SPE Miranga S.A. and Potiguar E&P, the oil and gas company PetroReconcavo has closed a contract with Cegás and is the new natural gas supplier for the Cearense distributor. As a result, this Thursday, (30/06), the state of Ceará will have an even greater diversification in the fuel supply chain and could benefit from an even more competitive market regarding prices passed on to consumers.

Cegás Signs Contract with PetroReconcavo and Will Receive Natural Gas from the Oil Company to Diversify Fuel Entry in the State of Ceará

In another step taken towards the expansion of the fuel market in the state of Ceará, the distributor Cegás has signed a contract with PetroReconcavo for the supply of 30,000 m³/day to the Cearense piped gas company. Subject to the contracting of transportation services with Transportadora Associada de Gás (TAG), the contract has the possibility of expanding the volumes supplied and will have a validity of one year after the start of fuel supply in the region. 

Thus, PetroReconcavo emphasized that the hiring of new volumes for the daily supply of natural gas will depend on the interest of both parties. In addition, the oil company highlighted that for this to happen, appropriate infrastructure for the transport of fuels in the state of Ceará is necessary.

This is because the gas processing and transportation chain, until it reaches the distribution process, requires a series of quality structures for greater operational efficiency. Further regarding the contract, Cegás announced that the price of the product is tied to the quotation of the Brent crude oil barrel.

With the completion of the contract with Cegás, PetroReconcavo takes another step to expand its presence in the fuel market in Brazil, as it has contracts with three other companies for the supply of natural gas. Among the agreements, the primary one currently is with the Bahian distributor Bahiagás, which provides for the delivery of 600,000 m³/day in the second half of 2022. In addition, there are also agreements with Potigás for the delivery of 236,000 m³/day by the end of 2023, and with PBGás for the delivery of 80,000 m³/day in 2022.

Cegás Continues in the Search for Diversification of Fuel Supply with New Gas Supply Contract from PetroReconcavo in the State

Aiming to reduce dependence on fuel supply from the state-owned Petrobras over the coming years, various Brazilian distributors are now investing in their own contracts, like the Cearense company Cegás. This is because, in addition to the agreement with PetroReconcavo, the company is seeking negotiations with Galp Energia and Shell Energy for the hiring of up to 600,000 m³/day of natural gas.

The company aims to start supplying natural gas as early as the second half of 2022, as a way to increase competitiveness in the Cearense internal market. The main cause of this rush for new contracts was the decision of the Superior Court of Justice (STJ) in March this year, which finalized a ruling that prevented Petrobras from raising fuel prices for the company Cegás. 

Thus, with high prices at Petrobras and no security for stability in values, Cegás seeks in the contract with PetroReconcavo a more viable alternative for the supply of natural gas in the state and intends to continue in the race for diversification of fuels in the internal market.