In Addition to the Fluctuation in Oil Prices, New Sales Contracts with Distributors Allowed Petrobras to Reduce the Natural Gas Sale Price Last Saturday
To reaffirm its commitment to the new natural gas market in Brazil, Petrobras announced in a relevant fact on August 3rd that it adjusted and reduced the natural gas sale prices for distributors last Saturday (01/08). Petrobras Starts Leasing Process for the Liquefied Natural Gas (LNG) Regasification Terminal in Bahia
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According to Petrobras’s statement, contracts initiated in January 2020 will have an average accumulated reduction of 48% in dollars per million BTU (US$/MMBtu), compared to December 2019. The percentage also considers the dollar exchange rate on the contractual price update date.
The BTU is the unit of energy measurement used in the United States and the United Kingdom. When measured in reais per cubic meter (R$/m³), prices will have an average accumulated reduction of 35%, despite the depreciation of the real.
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“Petrobras reaffirms its commitment to the process of opening the natural gas market, whose Commitment Term of Cessation was signed in July 2019 with the Administrative Council for Economic Defense (CADE). The company has been working to accelerate the stages under its responsibility in pursuit of developing a competitive and sustainable market,” the state-owned company informed.
Petrobras highlighted that the sales contracts with distributors are public and available for consultation on the website of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), but pointed out that the variation follows the international price.
“The price reduction reflects the new sales contracts with the distributors, where the price of the gas molecule is linked to the fluctuation of oil prices in the international market, which is reviewed quarterly.”
The specific data of Petrobras’s new prices with the distributors were not revealed in the statement. The state-owned company clarifies that the final price of natural gas to the consumer is not determined solely by the cost of the gas molecule and transportation but includes the margins of distributors and federal and state taxes.
“In addition, the tariff approval process is conducted by state regulatory agencies, according to specific legislation and regulation.”

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