PPSA has released the preliminary notice for the sale of 1.1 million cubic meters of natural gas per day, focusing on strategic industrial sectors to boost national competitiveness starting in 2027.
Pré-Sal Petróleo SA (PPSA) has taken a decisive step toward expanding energy supply for Brazil’s productive sector. The state-owned company has opened a public consultation for the upcoming auction of the Union’s natural gas, which will offer a daily volume of 1.1 million cubic meters. The bidding process is scheduled for October 22, with delivery of the supply expected between March and December 2027.
This initiative, based on Ordinance No. 141/2026 from the Ministry of Mines and Energy (MME), establishes a clear prioritization strategy. The primary goal is to provide more competitive conditions for specific segments, considered drivers of the Brazilian economy, which rely directly on stable gas prices.
Priority for base industries
The auction design segments the total volume into lots aimed at strategic areas. The petrochemical and chemical sectors lead the offer with 350,000 m³ per day, followed by steel, metallurgy, and mining with 320,000 m³. The ceramic, nitrogen fertilizer, and glass industries were also included.
To ensure broad participation, each consumer will have an initial purchase limit of 160,000 m³ per day. If the total volume offered is not fully absorbed in the opening round, the notice allows bidders to compete for the remaining amounts without a ceiling, opening opportunities for free consumers and market agents if industrial demand is met.
Selection criteria and competitiveness
According to Luis Fernando Paroli, CEO of PPSA, the selection of industries was not random. The government used criteria such as the structural relevance of the fuel, the weight of gas costs in final product pricing, and the level of idle capacity in Brazilian manufacturing plants.
“The level of idle capacity indicates that, in fact, this industry is not competitive in Brazil; it is simply surviving,”Paroli stated during the ROG.e event, reinforcing the need for policies to restore the sector’s dynamism.
Stable indexing and logistics
The auction’s pricing model opted for indexing to the Henry Hub, an international gas price benchmark, plus a premium to be defined during the auction. The choice aims to mitigate the volatility common to other benchmarks, such as Brent, ensuring greater predictability for long-term contracts.
The gas will be made available at the Boaventura Energy Complex in Rio de Janeiro, specifically at the Itaboraí Gas Treatment Unit. After receiving the supply at the plant, it will be the winners’ responsibility to arrange transportation to their facilities, ensuring logistics through contracts signed with carriers authorized by the ANP. This move, enabled by a strategic partnership between PPSA and Petrobras, marks a significant advance in the management of the Union’s share of gas.