Natural gas trading
Current transformations in the global natural gas market, with plenty and competitive natural gas supplies, coupled with initiatives to open a New Gas Market in Brazil, will result in a greater demand for gas and the development of a free market.
According to the Brazilian Ministry of Mines and Energy (MME), in 2019, 40 million m³/day of natural gas was consumed by the captive market of Brazilian distribution companies. With this market opening, it is estimated that within 10 years, the free consumption of natural gas in the free market may reach between 16 and 20 million m³/day. It is also worth noting the opportunity of providing services to Brazil’s gas distribution companies, currently exclusively served by Petrobras, which will have their contracts expired by 2024, representing a demand exceeding 25 million m3/day.
Compass’ business model in the gas trading consists of building a diversified and robust supply portfolio from different molecule originations, offering a safe and competitive supply in the firm and flexible modes for large customers/consumers, gas distribution companies, gas-powered thermal plants, and optimize the supply and demand for natural gas over the upcoming years. The expertise and reliance on the relationship with B2B clients in different businesses of Cosan Group, the experience gained in the positioning in the gas distribution and generation segments, maximize Compass’ positioning in the sector.
Concerning supply, agreements for diversified sources underway have been negotiating, among them, pre-salt, Bolivian gas, and liquefied natural gas (LNG) from different originations. Concerning demand, long-term gas agreements have been negotiated with potential free customers and distribution companies. Soon, these customers may choose the price indexations and the conditions of their gas molecules. Discussions have been advancing to access third parties’ infrastructure for natural gas pipeline, gas offtake, gas processing plants, besides regasification terminals.
Recently, Compass concluded negotiations of a commercial agreement with a relevant player for a 10-year supply of LNG of up 10 million m3/day to be regasified at the future São Paulo Regasification Terminal as from 2022.
Natural gas
The natural gas has a far-reaching supply scenario ahead, whether due to the rising entry of pre-salt fields, with multiple suppliers or due to a global LNG (liquefied natural gas) market, added to relevant regulatory advances, whether at the federal or state levels, which will allow the access to key infrastructures and obtain gas molecules increasingly more competitive and the long-awaited market opening.
We at Compass Gás e Energia, introduce ourselves as a real alternative for customers in this new gas market, combining a highly qualified and experienced team. We pursue the most diversified and new sources of supply, investing in the construction of an LNG hub on the São Paulo coastline, which will open room for even more competitive and flexible sources and ensure to our customers a safe and efficient migration to this new phase.
