BLOCK IV – NATURAL GAS

NATURAL GAS SUPPLY

“The Brazilian natural gas market has been traditionally met by domestic supply and natural gas imported from Bolivia. Over the last decade, with the construction of re-gasification terminals, liquefied natural gas (LNG) also happened to be a potential source of supply, particularly for the care of thermoelectric plants. Today the country is supplied by natural gas production from the pre-salt layer.
There are therefore a number of possible sources of supply, in the context of national production growth, increased production of unconventional gas in the United States, Australia and Argentina and the expiration of a Bolivian supply contract.
The themes of this topic aim to raise discussions that can affect the supply of gas, considering the changes in the international market, such as those promoted by the American shale gas, as well as the regional (Latin America) and local perspectives, in particular regarding the pre-salt layer.”

Production – Brazil

• Perspectives
• Onshore and offshore production (pre-salt and post-salt)
• Possibilities for shore gas supply in Brazil

Importation

• LNG
• Pipelines (Latin America)

Non-conventionals

• Biogas
• Shale gas, tight sands, CBM – Coal Bed Methane

INFRASTRUCTURE

“The natural gas industry is composed of a series of interconnecting segments in order to allow the produced gas to be processed and moved in purpose of reaching the consumers of the product. There is, therefore, the presence of infrastructure assets in the different segments of the energy value chain, from the production to the delivery to final consumers. Effective utilization and investments in infrastructure assets are critical not only to enable the development of new natural gas markets, as well as to promote growth or even provide sustainability to existing markets. Access to essential infrastructures (drain pipelines, processing plants and regasification terminals), transport and distribution of gas is a necessary condition to allow the development of a more competitive market.

The discussion about the use of the infrastructure is of great importance, particularly in a context in which it is sought to attract new agents to achieve investments in the industry, through the introduction of competition in the different chain activities.”

Infrastructure

• Wet gas pipeline
• Natural Gas Processing plants
• LNG Terminals

Transmission

• Pipelines
• CNG/LNG

Storage

Distribution

ELECTRICITY AND INDUSTRY GAS INTEGRATION

The natural gas-fired generation is becoming increasingly relevant to the electric power supply. In Brazil, the theme gains importance because it appears as an alternative safe and environmentally appropriate energy to expand the supply of electricity and also as an “anchor” for the development of the gas market, the domestic gas production projects and the import of LNG. In addition, industrial facilities can also be considered as anchors for the expansion of natural gas infrastructure, as they have high firm consumption to make projects economically feasible.
The need to increase the synergy between industry, the electricity sector, and the natural gas sector has become increasingly important and the debate on the issues raised for this theme aims not only to reduce the information asymmetry between these markets, but also to point out ways for the sustainable use of natural gas as an alternative
for electricity generation and as a fuel and feedstock for the industrial sector.

ELECTRICITY INTEGRATION

• Complementarities of natural gas and renewables
• Base load dispatch
• Solutions to provide thermo electric dispatch flexibility
• NG Generation as a market anchor
• Impact of NG thermo power generation in the domestic supply and LNG

INDUSTRY INTEGRATION

• Natural gas as fuel for the industrial sector
• Natural gas as feedstock for the industrial sector
• Industrial facilities as market anchor
• Impact of industrial demand in the domestic supply and LNG

PLANNING AND MARKET

“The gas industry is capital intensive and investments present long-term return. For this reason, the final decisions of investment in different activities of the chain are impacted not only by the current regulatory and institutional environment but also by the development prospects of the industry.
This block aims to discuss different marketing scenarios for natural gas, both within the national, regional and international scope, considering the technological, environmental, socio-economic, institutional aspects, among others, that can change the profile of consumption and production of natural gas.

Cenários Oferta vs. Demanda

• Gás Natural como combustível para o setor industrial
• Gás Natural como matéria prima para o setor industrial
• Empreendimentos industriais como ancora de mercado
• Impacto da demanda industrial na oferta de gás doméstico e GNL

MARKET AND PLANNING

Competitiveness and Pricing

• Free market

Supply and Demand Forecasts

• Brazil
• Latin America
• LNG Trading
• Global outlooks

Gas use

• Domestic, commercial, industrial, automotive
• Cogeneration and Distributed Generation

TAX, ECONOMIC AND FINANCIAL EVALUATION OF PROJECTS

The gas market in Brazil has been consolidating and this process should accelerate with the adoption of new legislation for the industry. As a reflection of this new environment, investments are being made by new and returning actors throughout the value chain of natural gas, since the flow activity until new thermal generation projects.
A more in-depth understanding of the tax, economic and financial framework, through the presentation of existing/potential projects or specific studies, can serve as a guide and point the way for the development of the sector, encouraging investments across the value chain.

• Monetization
• Wet gas pipeline
• C2/liquids Infrastructure
• Processing Plants
• LNG Terminals – Regas and Liquefation
• Transmission and distribution
• Thermo Power Generation
• GTL
• Industry

REGULATION

The Brazilian industry of natural gas has gone through a significant transformation process. The repositioning of the Petrobras allowed the insertion of new agents in different segments of this industry. In parallel, the initiative New Gas Market (Novo Mercado de Gás), that now unfolds in the discussions of the PL, 6,407 aimed to discuss improvements in the legal framework of the natural gas industry, in order to make it more dynamic, competitive and with more liquidity.
Under the program The New Gas Market (Novo Mercado de Gás) was discussed and proposed improvements in the legal text that aim at boosting the different activities of the natural gas value chain. As a result of this change in the legal framework, the proposition of new standards or the revision of current regulations will be necessary. In this sense, it is essential to carry out an extensive discussion of the adjusting object themes in order to contribute to the establishment of new rules necessary for the development of the gas industry.

• Wet gas pipelines, processing and terminals
• Transmission, Storage, Distribution and Trading

LNG

• Global supply-demand scenarios
• Price perspectives
• Logistics / Integration
• Contracts (short term vs long term)
• New Technologies

GLOBAL REGIONAL ASPECTS

• Regional supply outlook – Argentina and Bolivia
• Solutions to enable energy integration
• Regional chalenges and opportunities
• Evolution of the energy matrix in developing countries
• Natural gas worldwide geopolitics