PETROBRAS OPENING ACCESS TO ITS GAS PROCESSING PLANTS TO OTHER COMPANIES

May 27, 2020

Petrobras informed earlier this evening (27) that it took the first steps to allow access to its natural gas processing units by the other producers of the input in Brazil. The announcement comes hours after the Federation of Petroleum Workers (FUP) accused the company’s management of lack of honesty, as it was conducting an explicit process of privatizing the company.

Flexibility of access to processing units is part of Petrobras’ commitment to promote the opening of the gas market in Brazil intended by the federal government. The state-owned company said the fuel processing capacity will be offered in two stages.

In the first one, which is already underway, the offer will be for agents who have rights over the production of natural gas in production fields, thus ensuring the continuity of the country’s oil and gas production. After the negotiations of the first phase, the next phase will begin with the offer of the processing capacity available to the other interested agents, which will happen annually.

“Currently, Petrobras buys the volumes of natural gas from other producers, onshore and offshore, in Brazil, processes at its units, contracts for transportation through pipelines and resells the gas to state natural gas distributors,” explained the company. The company says that in the new model, gas producers will no longer need to sell gas to the state-owned company. “Producers will be able to contract part of Petrobras’ processing capacity and will continue to own the gas produced and all its derivatives, allowing them to directly negotiate their products with the market.”

Source: PetroNoticias

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