New gas agreements deflect price hike

New gas agreements deflect price hike

Sao Paulo, 7 March (Argus) — Natural gas supply agreements in the newly liberalized market signed between Brazilian distribution companies and producers other than state-run Petrobras were able to deflect part of the price increases in January and February.

Among non-Petrobras gas supply agreements, the average price would have increased by 7.2pc from December to mid-February in the region of the country with the most new contracts by Petrobras' competitors, at the TAG pipeline in the northeastern region.In the same period, if only Petrobras gas supply contracts were taken into account, average gas prices would have increased by 48.7pc.

On average, the Brazilian natural gas network price calculated by Argus rose by 35.1pc from December 2021 to 16 Febraury to $14.281/mmBtu, after all the new agreements were released by oil and gas regulator ANP and included in the calculation — but prior to affects of the conflict in Ukraine. Until the start of 2022, only Petrobras had running contracts for gas supply.

The price increase rose by 48.7pc, to $15.491/mmBtu, when analyzing the gas supply agreements at the TBG pipeline that brings Bolivian gas to Mato Grosso do Sul, Paraná and Santa Catarina states, with interconnection at Sao Paulo, where there are no