An agreement between PPSA and Petrobras paves the way for the flow and processing of the Union’s gas from the pre-salt, driving the long-awaited gas auctions.
Brazil’s energy sector is celebrating a significant milestone with the formalization of the agreement between Pré-Sal Petróleo SA (PPSA) and Petrobras. The strategic partnership focuses on the outflow and processing of the Union’s gas, an abundant resource from the pre-salt reserves, aiming to optimize its integration into the natural gas market.
This collaboration is fundamental, as it unlocks a bottleneck that has, for years, hindered the full commercialization of the gas volume belonging to the Union. The measure not only strengthens Brazil’s position as an energy producer but also sets the stage for a new cycle of gas auctions, promising greater dynamism and competitiveness.
Historic Agreement Boosts Pre-Salt Gas
The announcement of the partnership, made last Thursday, September 10, coincided with the opening of a public consultation by the Ministry of Mines and Energy (MME) on the guidelines for the anticipated Union gas auction. The expectation is that the first round of tenders will occur as early as October of this year, accelerating the availability of the input.
With an initial term of three years, the contract establishes a purchase and sale model: PPSA will sell the rich gas (still unprocessed) to Petrobras and subsequently reacquire the treated molecule. This mechanism will allow PPSA to resell the processed natural gas directly to the market through new auctions.
PPSA confirmed that the pre-tender notice for the Union gas auction will be released in the coming days, following the directives of the MME ordinance. The National Agency of Petroleum, Natural Gas and Biofuels (ANP) has already been informed of the negotiations’ conclusion, ending a process that had been ongoing for over four years, since PPSA requested access to Petrobras’s outflow infrastructure. The delay, which exceeded the regulatory 180-day period, led the ANP to establish a special commission to monitor the discussions.
MME Details Upcoming Auctions and Priority Access
The public consultation launched by the MME, open until September 14, outlines the strategy for the Union gas auctions. The objective is to prioritize supply for free consumers in key base industries, including the chemical and petrochemical, fertilizer, steel, metallurgical, mining, ceramic, and glass sectors.
Volumes will be fractioned into 20,000 m³ products, with a purchase limit of eight products per company in the first round, totaling 160,000 m³ of gas per day. If there is remaining gas, subsequent rounds will allow base industries to increase their purchases, opening up space for other free consumers only in a third stage, ensuring the fulfillment of the country’s strategic needs.
This agreement represents a crucial advancement for Brazil’s energy security and industrial development. By enabling access and commercialization of the Union’s pre-salt gas, the country not only diversifies its energy matrix but also offers a vital input for base industries, boosting competitiveness and economic growth. The expectation is that the upcoming gas auctions will attract investment and consolidate Brazil as a relevant player in the natural gas market.
