Brazil’s Maranhão state gas distributor working on expansion plan

Maranhão state gas distributor Gasmar is working on a major expansion plan for its business, the Brazilian utility’s president, Allan Kardec Barros, told BNamericas. 

The company is investing 100mn reais (US$20mn) to build a gas pipeline connecting Itaqui port to a plant owned by iron ore giant Vale.

The 4km gas pipeline will be the first on the island of São Luís, where the capital of the northeastern state lies. The work is expected to be completed by July 2024. 

The gas will be supplied by Eneva, which operates several onshore fields in the Parnaíba basin.

The company will transport the liquefied gas by truck to Gasmar's city gate station, where it will be regasified before entering the new pipeline.  

Another front on which Gasmar is expanding its activities is vehicular natural gas. The company plans to invest in the construction of regasification plants at three service stations in the second half of next year.

Once again, Eneva will supply the fuel and will also be responsible for transporting it to the gas stations. 

According to Barros, each plant should require an investment of around 10mn reais.

The executive added that Itaqui port, which is the country's largest fuel importer, is conducting a bidding process for an area to install a liquefied natural gas (LNG) regasification terminal, with the winner having the right to carry out the works. 

"This is interesting for Gasmar, both for imports and exports," said Barros.

Meanwhile, Barros, who was director of regulator ANP between 2008 and 2012, is holding talks with Petrobras about its exploration projects off the state's coast, in the Pará-Maranhão and Barreirinhas basins. 

"We're waiting for the drilling license to come through. There are signs of oil and gas in Petrobras' blocks," he said.