Augusto Salomon, CEO of Abegás, believes that Brazil is gaining momentum to adopt gas as a more relevant energy matrix. In this interview, Salomon attests to his positions in market numbers and surveys that indicate a promising future for investors. 

1) Economic growth is one of the axes of the new moment that Brazil begins. How do you see the economic and social contribution of natural gas - gains already evidenced and which futures - for the country?

The country has a scenario with clear prospects for economic growth, as the Central Bank itself and several analysts point out. And in this process of effective recovery, natural gas plays a strategic role in bringing together several attributes: excellent productivity and heat quality, simple logistics with stable and continuous supply, high safety, low greenhouse gas emissions and competitive costs. The expansion of natural gas is important for the country because it makes possible new projects, generates quality jobs, takes income to cities and localities.In addition, throughout the world the economy is moving towards a cleaner model and Brazil has natural gas as a pillar of sustainable development in the coming decades. According to a study by Strategy / PwC consultancy for Abegás, the increase in domestic production in the Pre-salt combined with the international context of greater supply points to a future in which gas tends to gain more relevance in the Brazilian energy mix.

2) What points will Abegás prioritize in relation to the promotion and expansion of the natural gas market in Brazil? 

Abegás, together with its associates, has prepared a 52-page document that makes a diagnosis of the sector and presents proposals to foster and expand the market. This contribution has been brought to the government and contains ways to expand gas supply, develop demand, increase competitiveness and solve barriers to accessing existing infrastructure or even investing in new facilities.We are confident in the sensitivity of the Government and Congress to implement measures that encourage the full potential of attracting investment in the sector, which we estimate at least US $ 32 billion, excluding Exploration & Production. We have acted to demonstrate the importance of Brazil to follow this path. We believe that an essential point is the adoption of measures that guarantee the agents' access to the infrastructures of outflow, processing, regasification and transportation terminals.The entry of new suppliers, increasing competition in the supply of the molecule to the Brazilian market, will be able to allow the gas to reach consumers in even more competitive conditions.

3) What investments should the Federal Government prioritize for the country's energy security? 

Augusto Salomon - Natural gas is fundamental to give energy security to the country in a context of increased participation of so-called new intermittent renewable sources (wind and solar photovoltaic). Today, the country has a thermo-generation park that could be better used. We defend the insertion of natural gas thermals in the base of the electric system, using the plants not only during peak hours or in situations of hydrological risk.With this measure, the country gains in energy security, reduces the cost of this generation and improves the planning of the entire electrical system. Gas thermogera- tion on a firm basis would be important for preserving and recovering the water reservoirs and give the back-up to the expansion of wind and solar photovoltaic sources which are intermittent energies and, therefore, of less predictability.

4) The role of natural gas distributors. How do you analyze the scenario of this market in a 4 year horizon? 

In recent years, even with the economic crisis, distributors have played their part, investing even more in improving their services and growing the distribution network. A sign of this is that from 2017 to 2018, the distribution network increased by 5.1% and the number of consumers, 6% - while GDP, according to forecasts, is expected to close by approximately 1.3% in 2018.In the calculations of Strategy / PwC consultancy for Abegás, only the distribution sector can move R $ 5.5 billion in investments until 2030 in the expansion of the network. It is important that the federal government and state governments create conditions that encourage the use of natural gas for its environmental, economic and social benefits, ensuring greater legal certainty and attractiveness for investments.

5) What has been the evolution of the Brasduto project, one of the flags of Abegás? 

The proposal of Senator Ronaldo Caiado is important to encourage the expansion of essential infrastructure (gas production pipelines, natural gas treatment and processing facilities) and natural gas pipeline networks in the country.In this sense, the creation of a fund for investment in the sector would contribute to the increase of the supply, monetization of the natural gas of the pre-salt and, consequently, would promote a more competitive market and with fair tariffs. The bill is expected to return to the floor of the House of Representatives plenary this year.

6) How do you see the natural gas market in Santa Catarina and the performance of SCGÁS? 

The natural gas market in Santa Catarina has been expanding year by year, as a result of the technical and commercial competence of SCGÁS's entire staff. We believe in the potential of SCGÁS to continue growing and bring the benefits of natural gas to all regions of the State.