Brazil approves temporary gas transmission charges for 2022

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The Brazilian Hydrocarbons Regulator (ANP) approved temporary natural gas transportation charges for short-term access to pipelines controlled by Nova Transportadora do Sudeste (NTS) and Transportadora Associada de Gas (TAG), removing another bottleneck. ‘throttling for third party access to the transport system.

The tariffs will be valid for 2022 for a maximum period of one year or until the two pipeline operators conclude their respective open seasons. According to the ANP, the temporary tariff structure is necessary because no pipeline operator is expected to conclude the tendering process before the end of the year.

The new charges will introduce a distance-based element to gas transport in addition to the “postage stamp” system currently in place, and does not take into account the distance between entry and exit points. For the ANP, this postage stamp system does not accurately reflect the costs of using transport infrastructure.

For access to TAG’s 4,500 km (2,795 mi) pipeline network, 10% of the tariff will reflect distance and the remaining 90% will continue to be based on the postage stamp system. To access the 2000 km network of NTS, 20 pc will cover the distance and 80 pc the postage stamp.

The ANP pointed out that the lower weight of the distance-based tariff for the TAG is intended to limit the higher transport costs for users at the ends of the pipeline.

For ANP, the new system will facilitate access to third-party pipeline users, thereby increasing competition in the market.

Access to TAG’s pipeline infrastructure is key for distributors in northeastern Brazil, who are currently finalizing new supply contracts for 2022 after state-owned Petrobras announced it would not renew contracts for TAG. supply expiring.

So far, Shell, gas trading company Compass and onshore producer Petroreconcavo have each signed three contracts with distributors in the region and onshore producer Origem Energia have signed two contracts.

Disclaimer

Argus Media Limited published this content on 28 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 28, 2021 10:07:10 PM UTC.


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