Petrobras held the 10th electronic natural gas auction Tuesday, offering 22 million cubic meters per day for a period of six months and with deliveries scheduled to begin on April 1. New rules encourage increased consumption with the progressive reduction of the average gas purchase price as sales grow compared to what is being consumed today. This auction gives continuity to Petrobras' strategy, kicked-off in 2009, for the development of the secondary market for natural gas.
Sixteen natural gas distributors participated and bought volumes in the auction. The auction reached record sales of 6.87 million cubic meters of gas per day. This was the largest sales volume of all the natural gas auctions held by Petrobras since May 2009. The average discount recorded in this auction was 47% compared to prices of the long-term contracts.
The sales were made in sub-markets defined based on the characteristics of the logistics of each region, with the novelty being the new gas interconnection in the Southeast and Northeast regions via GASENE, the integration pipeline, which will go into commercial operation in April.
Besides the fact that gas will be transported over an integrated network, which will allow the market to be supplied with a mix of domestic and Bolivian gas and LNG, in April, Petrobras will also begin a new type of natural gas sales in the secondary market over the next six months. Each week, customers can make purchases in addition to what was bought in this auction at even more competitive prices until reaching the volume of 22 million cubic meters a day.
The creation of the secondary market for natural gas in Brazil was made possible by the investments Petrobras made to boost the production of natural gas, diversify sources of supply based on liquefied natural gas regasification terminals in Pecém and Guanabara Bay; and in expanding the transportation infrastructure (gas pipelines, compression stations and systems, and city gates). These investments increase the natural gas supply and the flexibility in meeting the needs of both the thermoelectric and non-thermoelectric segments.
Petrobras reasserts that the goal of these new marketing modes is to make the price reductions reach the door of those who actually uses the natural gas, the final user.
Petrobras sees success with natural gas auction