Spotlight: Brazil’s piped gas concessions

Brazil has six piped gas distribution concession contracts due to expire by the end of this decade, according to a BNamericas survey.

The ones closest to termination (2027) are those of CEG and CEG Rio of the Naturgy group, which operate in Rio de Janeiro state. 

Last week, both firms submitted to Rio de Janeiro’s government a request to extend the concessions for another 30 years, as foreseen in the contracts signed in 1997. 

A technical cooperation agreement was signed between Rio’s secretariat for energy and maritime economy (Seenemar) and regulator Agenersa to work together on the valuation of the concession, as well as a new model – either for a new tender or in the event of an extension, in which case the state will be able to decide on all the terms of the new concession period. 

The deadline to confirm the contract extension is January 2026. 

The contract of MSGÁS, in Mato Grosso do Sul state, is due to end in 2028, with the possibility of being extended for 30 years. 

Meanwhile, the concession of Necta, which is controlled by Compass Gás e Energia, ends in 2029 and may be extended for 20 years. 

And 2030 is the deadline for the contracts of CEBGÁS and Gás Natural São Paulo Sul (Naturgy).The former can be extended for 30 years and the latter for 20 years. 

Company	State	Expiration date
Algás	Alagoas	2043
Bahiagás	Bahia	2041
CEBGÁS	Distrito Federal	2030
CEG (Naturgy)	Rio de Janeiro	2027
CEG Rio (Naturgy)	Rio de Janeiro	2027
Cegás	Ceará	2043
Cigás	Amazonas	2032
Comgás	São Paulo	2049
Compagas (Compass)	Paraná	2054
Copergás	Pernambuco	2042
ESGás (formerly BR Distribuidora)	Espírito Santo	2043
Gás Natural São Paulo Sul (Naturgy)	São Paulo	2030
Gasap	Amapá	2032
Gasmar	Maranhão	2031
Gasmig	Minas Gerais	2053
Gaspará	Pará	2036
Gaspisa	Piauí	2031
Goiasgás	Goiás	2031
MSGÁS	Mato Grosso do Sul	2028
MTGÁS	Mato Grosso	2033
Necta (formerly Gás Brasiliano)	São Paulo	2029
PBGÁS	Paraíba	2044
Potigás	Rio Grande do Norte	2044
Rongás*	Rondônia	N/A
SCGÁS	Santa Catarina	2044
Sergás	Sergipe	2043
Sulgás (Compass)	Rio Grande do Sul	2044

Source: BNamericas/ *Rongás has not started operations yet

Paraná state’s Compagas, which was recently acquired by Compass, had its concession extended in June for 30 years. 

The new contract foresees an investment of 505mn reais (US$90mn) between 2024 and 2029 to expand the company's operations in the state, especially to the municipalities of Londrina, Maringá and Lapa.

The capex also envisages the inclusion of biomethane in the piped gas network and the development of sustainable corridors supplied with natural gas and biomethane.

The press office for Brazil's piped gas companies association Abegás told BNamericas that the average consumption of natural gas distributed by piped gas utilities in 2023 was 52.7Mm3/d.