Page 10 - LatAmOil Week 45 2021

LatAmOil GUYANA LatAmOil

Meanwhile, it also calls for the building of solar will be executed between 2027 and 2032, the
power facilities to meet the needs of indigenous government will work to phase out existing
communities. TPPs that burn petroleum products such as
The clean energy plan covers the period end- residual fuel oil. These plants are to be replaced
ing in 2027. By the end of that year, it says, one with a combination of wind, solar and hydro
group of Guyanese towns that is located close projects.
to a key mining area will be powered solely by The 26th UN Climate Change Conference
renewable energy. is being held in Glasgow, UK and will end on
Then in the second phase of the plan, which November 12. ™

BRAZIL
Brazilian gas utilities seen closing fuel

acquisition contracts by year-end

A number of Brazilian natural gas distribution Gas acquisition calls are also underway in
utilities are expected to close fuel acquisition other states, including São Paulo and Parana. In
contracts with private suppliers by the end of the the north-eastern region of Sergipe, Sergas is in
year, as the country’s gas sector opens up. talks with Shell Energy Brasil Gas, and in Ceara,
According to local press reports, several dis- Cegas is in talks with Compass Comercialização.
tributors are already in the final round of nego- In 2019, Brazil announced sweeping plans
tiations with gas providers, including Bahiagas, to loosen state-run Petrobras’ monopoly grip
SCGas, MSGas and Sulgas. Bahiagas, which is over the gas market with the aim of bolstering
from the north-eastern state of Bahia, is report- competition in the country. The government of
edly negotiating with Shell Energy do Brasil Gas right-wing President Jair Bolsonaro, who took
(part of the Anglo-Dutch major Royal Dutch office in January 2019, is keen to introduce free
Shell) and Galp Energia Brasil (part of Portu- market policies across the economy.
gal’s Galp). Meanwhile, Sulgas, from the south- The liberalisation process, which is set to
ern state of Rio Grande do Sul, is negotiating take years to implement, will unbundle gas sup-
with Shell, Cosan (Brazil), Gas Bridge (Brazil), ply from transport and distribution, in an effort
Petrobras (Brazil), New Fortress Energy (US) to encourage more upstream investment. It will
and Trafigura (Switzerland), among others. also involve the introduction of a new regime
Likewise, SCGÁS, from the southern state of of authorisations by the country’s oil and gas
Santa Catarina, has reportedly received offers regulator ANP, replacing the previous system
from 15 potential suppliers and has chosen five of government concessions and minimising
with which to start negotiations: New Fortress bureaucratic obstacles to pipeline construction.
Energy, Trafigura, Gas Bridge, Shell and Petro- The new rules are expected to shatter the
bras. MSGás, from Mato Grosso do Sul, also monopoly long-held by Petrobras over the
in the south of Brazil, has reportedly chosen energy sector. The national oil company (NOC)
Shell, Petrobras, GasBridge, Compass Comer- currently accounts for around 80% of Brazilian
cialização (Brazil) and New Fortress Energy to production and controls and operates almost all
begin negotiating. offshore pipeline and all processing plants. ™

Bahiagas is reportedly in talks with affiliates of Shell and Galp (Photo: Bahiagas)

P10 www. NEWSBASE .com Week 45 11•November•2021