The gas and energy market is going through a major transition, with increasing supply and competitiveness offering a variety of infrastructure investment opportunities. In the natural gas sector, offshore pre-salt proven reserves will allow domestic production to double in 10 years. Natural gas is the cleanest among all fossil fuels and its use is crucial for a low-carbon energy mix. Today, natural gas accounts for only 10% of Brazil’s energy matrix. Investments in pipelines will bring natural gas from offshore pre-salt fields to the shore enabling this share to increase.  Additionally, we see investment opportunities in Liquefied Natural Gas (LNG) regasification terminals, with LNG imported from the world’s main producing regions and transported overseas in cryogenic vessels.

Compass relies on Comgás, Brazil’s largest natural gas distribution company in its portfolio. It has a solid customer base and has been achieving consistent results year after year, with a robust growth plan. Comgás relentlessly works to serve over two million customers in its concession area, which encompasses the metropolitan region of São Paulo, the Administrative micro-region of Campinas, the Baixada Santista (Santos metropolitan region), and the Paraíba Valley. This area corresponds to less than 1% of the Brazilian territory while accounting for 30% of the country’s GDP. With a 17.000 km distribution pipeline network, Comgás provides natural gas to the industrial, commercial, residential and transportation sectors. Additionally, the company supplies natural gas to thermoelectric power plants and co-generation projects. More than a natural gas distribution company, Comgás is focused on the development of customer-centric services and solutions.

Natural gas will likely increase its share in the Brazilian energy matrix. Offshore pre-salt reserves therefore have the potential of supplying this gas on a competitive basis. Also, Brazil’s energy sector is going through a significant transformation, gradually becoming more diversified and complex. With limited supply growth from hydroelectric power plants, Brazil has been investing more and more in other energy sources. Rising demand for energy continues and natural gas-fired thermoelectric plants have been growing as an important and reliable source energy, neutralizing the system’s instability caused by renewable sources, assuring supply and contributing to the country’s economic growth.

In order to grow their businesses, customers increasingly demand natural gas and energy solutions tailored to meet their needs. In 2019, 30% of the electricity consumed in the Brazil was traded in the free market, up 25% from the volume sold four years before. Going forward, natural gas is also expected to play a relevant role in the Brazilian free market. Compass, a well recognized company in the electricity free market, now relying on Comgás’ expertise and customer base, will operate in this new environment where customers will increasingly want to source their natural gas supply directly.