TBG Signs Contract With Petrobras to Transport Natural Gas

Written by Valdemar Medeiros

Published on 05/01/2021 at 11:57

Transporte de gás natural

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Brazilian Gas Pipeline Carrier – TBG Signs Short-Term Contract with Petrobras to Transport Natural Gas

The TBG, which will transport natural gas to Brazil alongside Petrobras, owns Gasbol, a pipeline that imports natural gas from Bolivia and serves the Central-South region of the country. The offer begins with quarterly and monthly contracts for available capacities in the network, but there is a forecast for contracting even daily services.

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“This is a well-established model in the European market and, in Brazil, TBG is a pioneer, meaning it is the first and only to offer this type of product related to the market and conduct transportation alongside Petrobras of natural gas. Short-term products promote flexibility in contracting and generate liquidity in the market,” explains TBG’s CEO, Erick Portela.

Brazilian Gas Pipeline Carrier – TBG Closes Contract with Petrobras

The Brazilian Gas Pipeline Carrier Bolivia-Brazil (TBG) has signed its first Short-Term Product contracts with Petrobras, aiming to provide transportation services starting in January 2021 for the pipeline exits in Mato Grosso do Sul and Santa Catarina.

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Both contracts, when combined, foresee the daily transportation of 495 thousand cubic meters of natural gas and are categorized as Extraordinary, the company reported.

The Contracting

This type of contracting with Petrobras does not require public bidding, unlike firm contracts, and can be terminated or reduced by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

Short-Term Products represent an unprecedented business model in Brazil, aimed at meeting market expectations by allowing natural gas transportation through daily, monthly, or quarterly contracts.

According to TBG, five other companies are evaluating contracting the Short-Term Products from the natural gas carrier, but did not disclose which ones.

TBG Signs Contract With Petrobras to Transport Natural Gas

Brazilian Gas Pipeline Carrier – TBG Signs Short-Term Contract with Petrobras to Transport Natural Gas

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TBG Signs Contract With Petrobras to Transport Natural Gas

Brazilian Gas Pipeline Carrier – TBG Signs Short-Term Contract with Petrobras to Transport Natural Gas

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