TBG and Delta Geração sign the first gas transmission contract in Brazil for daily service

This TBG press release has been published using machine translation.

TBG and Delta Geração, of the Delta Energia group, have signed short-term contracts for natural gas transmission capacity in the daily service modality. This is the first time that this type of service has been provided in the domestic market. It is also the transport company’s first short-term contract with a company other than Petrobras.

TBG is the only company in the sector in Brazil that offers a transport service in quarterly, monthly and daily terms. The new contractual arrangements and other initiatives aim to contribute to the opening of the market, in the sense that they meet its requirements.

The service supports the supply of the William Arjona plant in Campo Grande (MS), the first thermoelectric plant in the country to use natural gas from the Brazil-Bolivia gas pipeline. With a system that allows for one-time activation, performed based on system conditions, the plant can demand up to 1.3 million cubic meters per day.

According to Jorge Hijjar, commercial director of TBG, the contract with Delta Generation represents a step forward for the country’s market. “The hiring of the Daily modality is unprecedented in Brazil and very relevant for the sector, as it shows that the entry of new players is already a reality, which generates competition and strengthens the business environment. This was only possible because TBG developed and submitted to the ANP the short-term products, the capacity offer platforms (POC) and operating platforms (PTG), which allow the purchase in time to make the viable service, according to the operating schedules, both of the transmission system and of the gas supply suppliers, allowing all the necessary actions to be planned for the next day.To date, successive contracts of the order of 600,000 m³ /day each have been signed and continuity of service delivery is expected”.

For Luiz Fernando Vianna, president of Delta Geração, the Diário transport contract mode with TBG indicates the maturation of the Brazilian energy market, which has progressed in the flexibility and freedom of agents. “At a sensitive time when generators are called upon to support system demand, the ability to close daily deals comes as an asset,” he observes.

The contracts were concluded through the Capacity Offer Portal (POC), which is a digital environment that allows contracting TBG’s short-term products and services (quarterly, monthly and daily) and accessible at www.oferta de capacidade .com .br.

Currently, the POC has offers and interested shippers can request the contracting of the capacity of one or more products, by entry point and/or exit zone, according to their interests.

About Delta Geração – Delta Geração belongs to the Delta Energia group, one of the largest energy companies in the country, and entered the electricity generation market with the acquisition of UTE William Arjona, the first power plant country’s thermoelectric to use natural gas from Brazil – Pipeline Bolivia. Inaugurated in 1999, the plant, located in Campo Grande (MS), had been inactive since 2017 and was reactivated in July 2021, after four years of inactivity.

The William Arjona TPP is a merchandising plant, i.e. it is triggered on an ad hoc basis, depending on power system conditions and production cost/revenue viability. With all the turbines running, it can consume up to 1.3 million cubic meters of natural gas per day.

About TBG – TBG is the Brazilian company responsible for the uninterrupted transport of natural gas to Brazil’s main economic axis, delivering up to 30 million cubic meters of fuel per day in the Center-West, South-East regions and the South of the country, which represent more than 50% of the national GDP. TBG supplies thermoelectric power stations, refineries and seven gas distributors.

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