INFRASTRUCTURE

The gas & energy market is undergoing a major transition, with greater supply and competitiveness offering diverse infrastructure investment opportunities. In the natural gas sector, pre-salt discoveries will allow domestic production to double  volume over the next 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 fossil fuel mix. Investments in other shipment routes to transport gas from offshore pre-salt fields to the continent will enable this percentage 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 by shipping vessels.

 

 

 

DISTRIBUTION

Compass already relies on Brazil’s largest natural gas distribution business in its portfolio, Comgás. It is not by chance the company is a leader. It has a solid customer base, and year after year has been posting consistent results, 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 concession corresponds to 0.63% of the Brazilian territory while  accounts for 30% of GDP. With an area comprising more than 19,000 km of distribution network in 94 municipalities, Comgás provides natural gas to the industrial, commercial, residential and automotive sectors. Additionally,  the company supplies thermoelectric power plants and promotes co-generation projects. More than a natural gas distribution company, Comgás is a business focused on the development of customer-centric services and solutions.

 

GENERATION

Brazil must increase its natural gas usage  in its energy mix, and the pre-salt has the potential of supplying this raw material plentifully and competitively.

Also, Brazil’s energy sector has been undergoing a significant  transformation, increasingly becoming more diversified and complex. With  limited supply growth  from energy generated by hydroelectric plants, Brazil has been investing more and more  in other sources, a trend to be sustained over the upcoming years. Rising demand for energy continues and natural gas-powered thermoelectric generating plants has been a source of supplementary energy and the basis for renewable energy, assuring supply and contributing to the country’s growth.

 

 

TRADING

Large consumers increasingly demand gas & energy solutions tailored to meet their needs in order to grow their businesses. In 2019, 30% of the electricity consumed in the country was traded in the free market, up 25% from the volume sold four years ago. Going forward, natural gas is also expected to have a significant role in the Brazilian free  market. Compass, which is already a leading company in the energy market, now, jointly with Comgás’ expertise and customer base, will operate in this new environment  where large customers directly trade their supply, assessing prices, volumes, and terms, and finding the best solutions.

 

Last update: June 1, 2021