Brazilian gas producers, consumers concerned about rates

Gas producers and consumers in Brazil are concerned about the uncertainty surrounding transportation rates for the fuel in the country. 

At the beginning of June, Nova Transportadora do Sudeste (NTS) raised tariffs on its gas pipeline network by 30%. 

NTS is one of the three major gas pipeline operators in the country, alongside Transportadora Associada de Gás (TAG) and Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG). 

On June 14, the forum of business associations for the development of the natural gas market (Gas Forum) questioned the increase and requested clarification from regulator ANP on the methodology used to make the decision. 

NTS justified the increase as being due to lower gas demand than was originally projected. 

The Gas Forum believes, however, that the increase is due to the inclusion of the Itaboraí-Guapimirim gas pipeline Gasig in NTS's asset base, which may have led to a rate distortion. 

"We're unable to predict how the transportation rates will be calculated. It's an open discussion between the transporter and the regulatory agency without necessarily including the participation of those who are going to pay the bill, and that has an impact on the risk assessment," Cláudia Brun, VP of Equinor Brasil, said on Wednesday during the Enase national meeting of electricity sector agents.

Equinor is the operator of the Raia field (formerly Pão de Açúcar, in Campos basin block BM-C-33), which is scheduled to start producing and selling natural gas in 2028. 

Mariana Amin, director of the national association of energy consumers Anace, said that the increase in NTS rates makes the already-high cost of gas even more expensive for consumers in Brazil. 

"From the industry's point of view, it's hard to decide if I'm going to switch from diesel to gas. If I'm going to adapt to it," he said at the Enase meeting.