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Petrobras sign an agreement for natural gas transportation and processing

Published by , Editorial Assistant
World Pipelines,


Petrobras signed, along with Petrogal Brasil, Repsol Sinopec Brasil, and Shell Brasil - partners in the Santos Basin pre-salt offshore gas pipelines - agreements for sharing natural gas transportation and processing infrastructures.

To formalise this milestone, the company held a virtual event attended by Petrobras’ CEO, Roberto Castello Branco, and the global executives of Royal Dutch Shell, Ben van Beurden; Galp Energia, Carlos Gomes da Silva, and Repsol, José Carlos Vicente Bravo. The objective is to build a more competitive natural gas market.

Sharing transportation capacity

The contracts provide for the physical interconnection and sharing of transportation capacities on routes 1, 2, and 3 (the latter owned by Petrobras and under construction), giving rise to the Integrated Natural Gas Transportation System (SIE). In the future, other companies producing natural gas will be able to adhere to the current contracts, subject to their provisions and provided that there is transportation capacity available in the System.

In addition to the SIE, also foreseen are contracts that constitute the Integrated Natural Gas Processing System (SIP), which covers the companies’ access to processing units, owned by Petrobras, located in Caraguatatuba, São Paulo, Cabiúnas, and Itaboraí (in construction), both in Rio de Janeiro. With the signing of these contracts, the companies will be able to transport the gas produced in the Santos Basin pre-salt fields over any of the export routes and process it in the plants owned by Petrobras.

Natural gas transportation routes and processing plants

With the signing of these contracts, the companies will be able to transport the gas produced in the Santos Basin’s pre-salt fields over any of the export routes and process it in the plants owned by Petrobras.

Milestone in the opening of the gas market

The combination of SIE and SIP is another essential step for companies to be able to sell their volumes of natural gas directly to their customers. This movement is part of a set of actions that enable the diversification of agents, resulting in increased competition and in a reduction in Petrobras’ participation in all links of the natural gas chain, in compliance with the commitments taken-on with the Administrative Council for Economic Defence (CADE) in July 2019.

Petrobras’ CEO, Roberto Castello Branco, highlighted the importance of signing these contracts: “The transportation and processing agreements will be a milestone in the opening of the Brazilian natural gas market. They demonstrate all partners’ commitment to contribute to the development of a competitive and sustainable market in the country.”

Read the article online at: https://www.worldpipelines.com/business-news/09102020/petrobras-sign-an-agreement-for-natural-gas-transportation-and-processing/

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