The gas transportation link is fundamental for the development and opening of the national gas market.
Since the approval of the Gas Law in 2021, the number of shippers (agents who contract transportation capacity to deliver their gas to the gas distributor) has increased exponentially, bringing more diversification and competition in the natural gas supply, which has already resulted in price reductions for the final consumer. This topic was discussed during the panel "The importance of the transportation link in the gas market opening process" on the last day of ROG.e, this Thursday (26th).

Gustavo Labanca (pictured), CEO of TAG, presented the growth of contracts signed by the company since the implementation of the Gas Law. The implementation of solutions such as the POC (Capacity Offer Portal) has brought dynamism and ease for agents to contract transportation capacity, resulting in greater competitiveness. "The Northeast market saw a nearly 15% reduction in gas prices. At TAG, we started 2024 with 44 signed contracts and reached 123 by August. This shows that the market opening is happening."

Erick Portela Pettendorfer, CEO of NTS, emphasized that the transportation network is already fully integrated, which brings supply security and better resource allocation. "The integration of transportation networks is essential for any gas supply source to flow to where there is demand. The transportation link is the true marketplace."

From the regulator's perspective, ANP director Bruno Caselli highlighted the actions the agency has been promoting to support the growth of the transportation link, which is strategic for the development of the gas market in the country. "We are advancing on important agendas, with technical notes and draft resolutions on various aspects of transportation, among others: authorizations for distribution via CNG and LNG, methodology for transportation tariffs, and criteria for defining transportation pipelines. These are all key topics to bring more legal and regulatory certainty to the market."

Adrianno Lorenzon, vice-president of the Shippers' Council (CdU), representing the shippers, explained that since its creation a year ago, the CdU has been meeting regularly with ATGÁS and transporters to improve processes and transparency of information that helps shippers better understand opportunities in the transportation system. "There is still much to be done, and we have important issues to work on, but we are already seeing improvements in the relationship between shippers and transporters.

Combat against illegal fuel trade

Another highlighted topic at the event was the fight against the irregular fuel market.

Leonardo Linden, CEO of Ipiranga, warned that there are currently around 90 clandestine distributors in the country involved in tax evasion, creating significant distortions in the sector. According to him, biodiesel tax evasion results in a 17% loss in value for companies in the segment.

"We invest R$ 1 billion in the market every year, but we face many distortions and illegal activities. It's hard to justify investing in Brazil under these business conditions," he said, advocating for the continuation of the single-phase tax regime across the entire segment.

Emerson Kapaz, president of the Legal Fuel Institute (ICL) and moderator of the panel, reinforced the need for approval of PL 15 in the House of Representatives, focusing on creating federal legislation that criminalizes chronic tax debtors, especially regarding federal taxes. "It’s a victory to have a joint effort between distributors and retailers in combating tax evasion," he emphasized.

Monica Barreto, Special Secretary of the Federal Revenue Service, stated that PL 15 is essential in combating irregularities in the fuel sector. She noted that the bill, in Article 30, defines different penalties for debtors, such as inclusion in a registry that prevents participation in government bids, among other measures. The aim of passing this bill in Congress is to curb the creation of shell companies and stop tax evasion nationwide. Around 800 companies operate in this environment, with the vote expected to occur after the municipal elections.

James Thorp Neto, president of FECOMBUSTIVEIS, highlighted a victory against special tax regimes for certain companies—mainly chronic tax debtors in Maranhão and Amapá—who gained a 14% revenue margin by not paying the ICMS tax.

Petrobras evaluates alternative sources for energy transition

Maurício Tolmasquim, Executive Director of Energy Transition and Sustainability at Petrobras, highlighted that Brazil's potential in hydrogen, wind, solar, and biofuels greatly facilitates the energy transition for companies based in the country. "We, as oil companies, have our task of transitioning much easier because we are in Brazil," he said during the panel that concluded Wednesday (25) at ROG.e.

In the view of Eletrobras’ Executive Vice President of Energy Commercialization and Solutions, Ítalo Freitas, hydropower is "the dream of any country," both for its generation capacity and its role in supporting other intermittent generation sources. He said that Brazil's highly renewable electricity matrix would provide the country with unique conditions for producing green hydrogen, and that hydropower is Brazil’s most competitive resource. "In this scenario, we are working on several MoUs (Memorandums of Understanding) with various industries that see Brazil's potential," Freitas said.

Tolmasquim pointed out that the world will still need oil-generated energy for many years, and in the best-case scenario, there will still be demand for 57 million barrels per day by 2050. "Pre-salt fields emit nearly half the CO₂ of the global average. If we stopped producing oil in Brazil today, global emissions would likely increase because another producer with a higher carbon footprint would take our place," he compared.

About ROG.e

ROG.e is one of the largest energy sector events in the world. Organized by the IBP, it is expected to receive more than 70,000 visitors from 65 different countries, including industry leaders, authorities, investors, academics, and other participants. The event spans 8 warehouses, with more than 550 exhibitors, 7 parallel events, and a congress.

ROG.e 2024 is sponsored by Petrobras, Shell, TotalEnergies, Equinor, Galp, Origem, Brava, Petronas, Prio, bp, Chevron, ExxonMobil, Modec, Repsol Sinopec Brasil, SBM Offshore, Acelen, Eletrobras, Excelerate Energy, Ipiranga, Pan American Energy, Vibra, Dell, Nvidia, Naturgy, TechnipFMC, TBG, Trident Energy, ABB, Construtora Elevação, Compass, Foresea, Huawei, Karoon Energy, OceanPact, Perbras, Subsea7, TAG, Transpetro, Vallourec, Renave, and includes participation from the Federal Government.