PETROBRAS DECIDED TO ABANDON GAS MARKET OF BRAZIL’S NORTHEAST REGION

Petrobras will no longer supply fuel to local concessionaires in the Northeast region of Brazil as of 2022. The announcement comes at a time when companies are promoting public calls for contracting gas for the next few years. The region accounts for 23% of national gas consumption (excluding thermoelectric plants). On the other hand, the oil company is targeting the free market and has a contract to supply gas to Proquigel’s fertilizers factories in Bahia and Sergipe. The state-owned company explained that the contracts already signed are assured and that they will “bring new operators to meeting local demands” as regards to the leasing of the terminal in Bahia in progress, and the sales of mature fields in the region. Petrobras also said that “they are open to find temporary solutions, if necessary” and that they are committed to the development of an “open, competitive and sustainable” market. While the company ceases the supply of gas in the Northeast, new agents are emerging in the local market.

Sources: Value/Ports and Ships (*Translated by Ia Niani)