Page 11 - LatAmOil Week 30 2022

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CDGN joins Tradener and GasBridge

in buying gas directly from Bolivia

CDGN, a subsidiary of Brazil’s MDC Group, has to deliver gas to buyers in southern, south-east-
become the third privately owned Brazilian firm ern and mid-central states.
to buy natural gas directly from Bolivia, without As of press time, the MDC subsidiary had
the national oil company (NOC) Petrobras act- not commented on the value of the deal.
ing as an agent or intermediary. Until relatively recently, state-owned Petro-
Under a new contract with Bolivia’s NOC bras was the only organisation in Brazil that
YPFB, CDGN will be eligible to purchase up to had the right to buy gas directly from Bolivia
4mn cubic metres per day of gas until the end and then sell it directly to customers. Under the
of 2023, Argus Media reported last week. The reforms adopted last year, though, private trad-
Bolivian NOC will provide the gas on an unin- ers may now procure up to 2.2mn cubic metres
terruptible basis, meaning that it will deliver per day of gas on their own.
these volumes whenever supplies are available Tradener became the first private Brazilian
at CDGN’s request. company to take advantage of the opportunity
The new deal will allow CDGN to gain in March 2022. It was followed by GasBridge in
access to larger volumes of gas for distribution June. ™
within Brazil’s domestic market. The company
is already able to take advantage of MDC’s posi-
tion as the owner of a number of onshore gas
fields, as well as the operator of biomethane
processing facilities. However, it has thus far
been distributing compressed gas by truck on a
smaller scale, via a road-based network with a
capacity of 350,000 cubic metres per day.
The deal with YPFB therefore has the poten-
tial to allow the Brazilian company to raise the
scale of its operations by an order of magnitude.
CDGN told Argus Media that its plan for han-
dling the increase involved using the Brazilian
section of the pipeline operated by Transporta-
dora Brasileira Gasoduto Bolivia-Brasil (TBG),
a cross-border system linking Bolivia and Brazil, Brazil imports gas from Bolivia via cross-border pipeline (Image: Petrobras)

Bolsonaro, Sachsida seek to quell

concerns over high diesel prices

BRAZIL’S President Jair Bolsonaro and Minister by Money Times.
of Mines and Energy Adolfo Sachsida sought to He also stated that his ministry had sought
assuage public concerns about high diesel costs official clarification with respect to sanctions.
on July 22, saying that the government was The Ministry of Mines and Energy has asked the
working to increase supplies in order to reduce Ministry of Foreign Affairs to identify the coun-
pressure on prices. tries that are not on the receiving end of trade
Speaking to reporters during a public restrictions that could complicate purchases of
appearance at a filling station in Brasília with fuel, he explained.
Bolsonaro, Sachsida said that the Brazilian
government was looking all over the world for Russian supplies
additional supplies of diesel. Brazil is ready to Bolsonaro, for his part, indicated that he hoped
buy extra fuel from any country that is not under to move forward with previously discussed pro-
international sanctions, he was quoted as saying posals to purchase diesel from Russia.

Week 30 27•July•2022 www. NEWSBASE .com P11