The state of Rio advanced 9% in gross production, 16% in the demand for natural gas (NGV) and 6% in industrial demand for natural gas in 2017. Nevertheless, the result could be far beyond what was achieved, according to Firjan and specialists. The details of this vision are included in the second edition of the publication "Natural Gas Prospects in Rio de Janeiro", released on December 3, in the federation.

"Our goal is to help coordinate this growth. Therefore, we are intensifying our activities in this market, which has great potential for the state, "said Raul Sanson, vice president of Firjan.

According to Karine Fragoso, the Federation's Oil, Gas and Naval manager, Rio's state is already a protagonist because it has growing production and infrastructure. "But we need to establish a sustainable regulatory framework so that projects are not unattractive," said Karine, who is also general superintendent of the National Petroleum Industry Organization (ONIP).

Gas market needs

According to experts, Gás Para Crescer, launched in June 2016 by the Ministry of Mines and Energy (MME), presents several positive points for a good regulation of the area. The current participation of natural gas in the Brazilian energy matrix is still low: only 12.3%, according to the National Energy Balance 2018. However, it is possible to change this number, mainly when analyzing the global trend of finding alternative and less polluting sources. According to Henrique Sonja, Braskem's raw materials manager, one of these opportunities is the pre-salt, which has the capacity to become Brazilian shale gas (in reference to the North American market). "Rio already distinguishes itself in the attraction of investments, because it has the only pole of chemical production base-gas in Brazil. A move in that direction will strengthen both industry and the development of the pre-salt, "he said.

Jan Karl Karlsen, Vice-President of Equinor's Energy Markets, said it was necessary to invest in the implementation of measures, such as an inbound and outbound system, which would allow more efficient use of transport pipelines, focusing on contractual flows. "That is, it will allow buyers and sellers to negotiate gas volumes regardless of their physical location, which brings more flexibility, liquidity and competitiveness to the market," he explained.

Other points identified were a regime and authorization for transport pipelines, with the purpose of speeding up and simplifying the expansion of the network; and greater integration between the electric and natural gas sectors. An integrated policy, according to experts, will provide a balanced allocation of risks, driving gas monetization.

"We propose that there be rules for remuneration of natural gas infrastructure consistent with the cost structure of thermal, as well as the spot price of gas should be signaled to the electricity sector, through indexation of the variable costs of the plants," informed Álvaro Ferreira Tupiassú, Petrobras' General Manager of Natural Gas and LNG Commercialization.

To know the study access the link https://www.firjan.com.br/publicacoes/publicacoes-de-economia/perspectivas-do-gas-natural-no-rio-de-janeiro-1.htm

Regulatory framework

Symone Araujo, director of the Natural Gas Department of MME, detailed the measures of the government to boost the market. "We are evaluating infralegal measures and ongoing regulatory changes, as well as studying ways to integrate natural gas into the electricity sector. We also approved, in April, in the National Council of Finance Policy (Confaz), a rule that will allow new agents to access the gas transportation network, "he said.

The National Agency of Petroleum, Natural Gas and Biofuels (ANP) also acts to boost and give more competitiveness to the sector. According to Helio da Cunha Bisaggio, Superintendent of Infrastructure and Movement of ANP, one of the reforms planned by the agency is to separate the activities of commercialization and distribution of natural gas. "The former must be competitive and the latter a natural monopoly of the states," he said.

He also highlighted the need for a standardized, independent supply contract with clear rules and predictability: "The first step is that carriers must provide public calls for capacity allocation every year. The supply of transport contracts should last one year and have a maximum advance of five, for the existing pipeline infrastructure. This process can signal the demand for expansion. "

About the publication

The publication presents the views of major players on the challenges and opportunities of this market, as well as statistical data and the main projects in the area. The aim of the study is to help stimulate production and increase the competitiveness of natural gas in the state.

It is therefore divided into four themes. These are: national natural gas supply: opportunities at sight, which relies on the views of Shell and Equinor; development of the natural gas consumer market in Rio de Janeiro, with articles from Gas Natural Açu (GNA), the National Committee for Natural Gas and Braskem; statistical data on natural gas in Rio de Janeiro, with 2018 surveys; and evaluation of the competitiveness of natural gas in Rio de Janeiro, prepared by Firjan.