Brazilian state-run energy company Petrobras said it is committed to opening access to the country's natural gas markets in 2022, and will adjust the volumes of gas to be carried on pipelines to meet market conditions.
Petrobras currently buys around 14mn m³/d (494mn cf/d) of natural gas from other producers, a volume that will gradually decrease and shift from Petrobras' transportation contracts to other players as the country prepares for a competitive market. Petrobras will also free another 20mn m³/d of transport capacity when the lease of the Bahia Regasification Terminal ends at the end of this year.
The company also expects some of its current gas clients will shift to other suppliers, meaning it will require even less transport capacity. The company did not disclose the volumes it expects to lose.
Under the new gas law, regulator ANP is analyzing the level of concentration in the market for 2022. It will be able to order Petrobras to cut its share in the market even further if it determines there is not enough competition.
TAG natural gas transportation company, with the largest pipeline network in Brazil located in the northeastern coastal states, said it will have an additional 22mn m³/d of capacity available starting in January for new gas carriers — half of its total capacity — with Petrobras' declining participation in the gas market.
Petrobras told Argus it is analyzing the information TAG sent about its capacity plans for next year and is waiting ANP's review.
"Upon completion of this analysis, Petrobras will indicate the corresponding adjustments in its previously indicated input and output capacity reserve," Petrobras said.
NTS Transportation, the largest pipeline system in the country in terms of volumes carried daily, has also told ANP the estimated volume that may have available, but the data is still under analysis and not yet public.
TBG transportation company, which carries Bolivian gas into Brazil, told Argus that any gas carrier will be able to hire transport capacity of 24mn m³/d next year, since Petrobras is freeing around 10mn m³/d capacity of TBG's network.
The participants in Brazilian new gas market are facing several uncertainties as it shifts from monopoly to competition. In the midstream, there are uncertainties on how new players will be able to contract gas supplies that need to be carried over more than one pipeline network and how these costs will be calculated.
Brazil's total gas transportation network has carried up to 100mn m²/d, but its total installed capacity is unclear since the country defines these limits under entry and exit contracts.
