Petrobras opens access to GPPs for other firms

Brazilian state-controlled Petrobras has signed deals with local upstream companies Shell Brasil, Repsol Sinopec Brasil and Petrogal allowing them to process their natural gas at its gas processing plants.

The agreements consist of gas purchases and sales on swap operations. No further details were disclosed. The contracts are the first of their kind signed by Petrobras, enabling the firms to start supplying gas in Brazil's new market model from 1 January. The deals contribute to the natural gas market opening, Petrobras says. After the gas is processed, the companies will receive the supply for delivery to local distributors or final consumers.

The contracts are in line with commitments agreed to with antitrust agency Cade, "with the objective of achieving an open, competitive and sustainable market in Brazil", Petrobras says. Petrobras was the only company able to process natural gas in Brazil using its own facilities prior to the reforms. Other oil and gas companies sold their gas to Petrobras at the wellhead, and Petrobras had a monopoly on the midstream and on gas sales to local distributors.