SHELL AND PETRORECONCAVO LEAD GAS MARKET PUBLIC CALL IN BRAZIL’S NORTHEAST

Shell and Petrorecôncavo won the public call opened by the Paraíba natural gas distributor, PBGás, for fuel supply between 2022 and 2023. The two producers have become the most active participants in the process of the gas market open in Brazil’s Northeast. Under the terms of the agreement, Shell will supply 100 thousand cubic meters per day (m3/day) to PBGás in 2022. Petrorecôncavo will supply 50 thousand m3/day in 2022 and 150 thousand m3/day in 2023. The current supplier Petrobras will continue to supply 80,000 m3/day until December 2023. The current contract between the parties has already provided for a gradual reduction in the volumes delivered by the state oil company. The CEO of PBGás, Jailson Galvão, said that Shell and Petrorecôncavo give potential for more competitive prices. Shell will supply gas from the pre-salt, while Petrorecôncavo will deliver the gas produced by the company in the Potiguar Basin, in Rio Grande do Norte.

Sources: Valor/Portos e Navios (*Translated by Ia Niani)