Petrobras on natural gas for distributors

May 08, 2020

Petróleo Brasileiro S.A. – Petrobras reaffirms its commitment to the proposals of the new gas market and informs that the sale prices of the product (which include the molecule and transportation parcels) to the distributors in the new contracts started in January had an average reduction of 36%, in US$/MMBtu, in May 2020, compared to December 2019, considering the dollar price on the date of the last readjustment of the contract (April 30, 2020).

This drop is mainly due to the changes negotiated with the distributors for the new sales contracts, where the price of the gas molecule is linked to the variation of the oil price in the international market and is reviewed every three months. Consequently, the fall in the oil price in recent months made possible the gas reduction.

If measured in R$/m³ ,Petrobras’ prices to distributors (including molecule and transportation) in the new 2020 contracts accumulate an average reduction of 15%, despite the depreciation of the Real.

However, Petrobras clarifies that that the price of the gas molecule and the cost of transportation are not the only factors that determine the natural gas price for the final consumer, and there are also the distributors margins, as well as the incorporation of federal and state taxes. It is important to highlight that the tariff approval process is carried out by each state regulatory agency, according to specific legislation and regulation.

Petrobras remains committed to the process of opening the natural gas market and has acted to accelerate the stages of this process, in pursuit of the development of an open, competitive, and sustainable market.

Finally, Petrobras informs that the sales contracts for the distributors are public and are available at the National Petroleum, Natural Gas and Biofuels Agency (ANP) website for consultation.

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