Unexpected increases to natural gas pipeline NTS' tariffs are poised to hit free-market participants harder than state-controlled Petrobras.
Hydrocarbons regulator ANP approved NTS' fee structure for access to its transport grid at the end of April, but the actual cost changes only became available after companies signed capacity contracts. Market participants said that a decrease in Petrobras' reserved capacity at the Tecab and Cabiunas terminals forced ANP to recalculate fees for the rest of the market, leading to unexpected increases.
The construction of Gasig, an 11km (seven-mile), 18mn m³/d pipeline that connects Itaborai and Guapimirim in Rio de Janeiro and the Rota 3 pipeline also factors into the increase. Initially, market participants were to be charged only when they accessed the new line, but the regulation later changed to spread Gasig costs among all NTS locations.
Petrobras has five active contracts with NTS that predate the Brazilian gas market's 2021 liberalization, and they are frozen until the agreements end, leaving Petrobras mostly unaffected by the new fee calculations.
The average tariff between the five Petrobras contracts is R3.3575/mmbtu ($0.62/mmbtu). The average recalculated fee for entry and exit at all NTS locations is R5.4288/mmbtu, including surcharges.
Petrobras claims information on its need to reserve NTS capacity was available to ANP and that the regulator was responsible for setting the criteria for tariff calculations.
Some in the market blame ANP for the increases and the lack of transparency that made them a surprise.
"The current situation is the result of a series of questionable decisions going back to antitrust watchdog Cade's commitment term [for the sale of natural gas assets]," one market participant said. "There is an asymmetry regarding who has access to information."
ANP said it is assessing the matter and studying possibilities for reversing the increase or mitigating its effects.
Petrobras could still reserve more pipeline capacity. Market participants say one reason Petrobras reduced its reserved capacity was because it had no long-term guarantee from ANP allowing injection of natural gas with more natural gas liquids (NGLs) than the current specification — as Rota 3 gas has more NGLs.
The company chose to reserve only the capacity it can ensure it will be able to inject under current specifications. If ANP signaled to Petrobras it would be able to use that NGL-laden gas, market participants say Petrobras would step back in.
