Integration plans for Brazil's natural gas infrastructure are becoming more important as the decline of Bolivian gas production and the multiple delays of the 355km (220-mile) Rota 3 offshore pipeline loom on the horizon.
Brazil's power research bureau (Epe) published an update of its study on possible pipelines projects, adding five new options to the 17 that were already studied in previous editions of the document. The five new pipelines could add 47.5mn m³/d in gas transportation capacity.
At least two of the pipelines in the plan coincide with gas transport association ATGas' plans for new investments. The first one is the Sao Joao da Barra–Macae pipeline, which would connect the 5.6mn t/yr LNG terminal at Brazil's Acu port to the Cabiunas natural gas processing unit, both in Rio de Janeiro state. The new pipeline would run alongside and eventually combine with transport company TAG's Cabiunas-Vitoria (Gascav) pipeline, adding up to 10mn m³/d of natural gas capacity.
The Duque de Caxias–Taubate pipeline would also coincide with ATGas' plans, connecting pre-salt natural gas production to Brazil's south. That would expand the Gascav pipeline and both plans point to the construction of new compression stations to enable an additional 20mn m³/d of gas movement.
The decline of Bolivian natural gas imports to Brazil and other factors that hinder natural gas availability, such as the delay of the Rota 3 pipeline, highlight the importance of integrating infrastructure plans. Epe released another document consolidating its studies for new natural gas outflow and transportation pipelines and LNG terminals over the years.
The studies outline 26 outflow pipelines connecting production to processing units, 22 transportation pipelines and four LNG terminals that could be built in Brazil. Integrated investments in the new infrastructure would be necessary to develop new markets in Brazil, according to a market participant. Epe estimates that around R196.7bn ($39.5bn) in investments would be necessary to build all projects.
These studies do not address urgent issues — such as the additional open seasons in Brazil's south, which aim to increase the availability of gas in the region — and instead focus on long-term planning. Decreasing Brazil's record level of reinjections and allowing more gas into the market would require planning on all these fronts to avoid the lack of infrastructure from hindering the development of new markets, according to a market participant.
Subida da Serra project comments still open
Brazil's oil and gas regulator ANP said last week it would extend the public comment period for the 31.5km Subida da Serra natural gas pipeline for another 10 days, until 14 September.
The process will continue with a public hearing on 20 September.
ATGas has sent its comments to ANP, questioning the decision to classify the pipeline as distribution infrastructure. It argues that the pipeline is extensive and not branched out such as a typical distribution pipeline, connecting a supplier to the local distributor.
In June, ANP ruled the Subida da Serra pipeline would be classified as distribution infrastructure, clearing the way for Sao Paulo state gas distributor Comgas to operate it.
Sao Paulo regulatory agency Arsesp classified the pipeline as distribution infrastructure because it would not be connected to a gas-processing unit, gas storage infrastructure or transport pipelines and would be used exclusively to supply end-users in Comgas' concession area.
ANP initially had ruled that the pipeline should be considered transport infrastructure because of its physical characteristics.
