Brookfield-backed NTS sees almost $240 mln in investments over five years

Aug 1, 2019

Nova Trasportadora do Sudeste (NTS) expects to invest 900 million reais over the next five years, while seeking to become more efficient and prepare the company for future expansion of the network and attract new customers beyond Petrobras, said the company president Wong Loon.

According to the executive, the company plans to commit resources primarily to eliminating bottlenecks, pipeline integrity and improving the measurement system.

NTS control was sold by Petrobras to Brookfield in April 2017 for more than $ 5 billion. However, the Brazilian oil company remains the sole customer of the pipeline.

“Today we have a single client and we have to work with multi-customers. It sounds like a simple thing, but even the software is not prepared for it, ”said Loon, attending an event of the Brazilian Petroleum Institute (IBP), warming up for the Rio Pipeline event.

Since the sale of NTS, the company has invested 180 million reais, primarily in safety and measurement issues, according to the Executive.

Regarding the possibility of expanding the network, Loon explained that there are no plans yet, as the company needs to wait for market signals.

“I have no expectation of expansion yet because I am not going to expand because I want, there has to be a demand. Production already exists, by 2023 there should be an increase in demand, ”said Loon, without elaborating.

But the executive pointed out that there have been market consultations about the possibility of using interruptible capacity in the pipelines, amid a climate of market opening.

The federal government is leading a gas market opening plan that foresees Petrobras’s complete exit from the transportation and distribution sectors and the entry of new private investments.

Loon also explained that partners at NTS are interested in buying the 10% that still belongs to Petrobras. However, he considered that, although the oil company had already announced interest in selling its share, no formal conversation took place on the subject.

Also present at the event, the CEO of the Associated Gas Transporter (TAG), Gustavo Labanca, also spoke about the interest in expanding the pipeline network. However, it indicated that the company needs to prepare.

“This (investing in new pipelines) is the goal, but first we need to clean the house. Today we have only one customer, Petrobras, this market will open and we have to be prepared for it, ”he said.

TAG was bought from Petrobras by a group led by French Engie for 33.5 billion reais, in a recently closed deal.

Source: Reuters

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.