Page 12 - LatAmOil Week 37 2021

LatAmOil BRAZIL LatAmOil

Petrobras to launch new fuel contracts

BRAZIL’S state-run oil and gas firm Petrobras is has already signed contracts for two of them –
planning to launch new contracts for the sale of namely, the Landulpho Alves Refinery (RLAM)
gasoline and diesel, in the hope of encouraging in Bahia State and Refinaria Isaac Sabba
competition in the refining sector. (REMAN) in Amazonas State.
The Sao-Paolo based company said it plans to The other six refineries have yet to be sold.
be “more flexible” so that it can respond to com- According to previous reports, Petrobras has
petition in the downstream sector. It also hopes been ordered to sell five of them – Refinaria
that the new contracts will create opportunities Lubrificantes e Derivados do Nordeste (LUB-
for the country to import more fuel, according NOR) in Ceara State, Refinaria Alberto Pas-
to a Petrobras securities filing cited by Reuters. qualini (REFAP) in Rio Grande do Sul State,
The company said in the filing that the Refinaria Gabriel Passos (REGAP) in Minas
changes would enable it to adjust to market Gerais State, Refinaria do Nordeste (RNEST) in
conditions. But it also stressed that there would Pernambuco State and Unidade de Industrial-
be no changes to its pricing policies. “In the izacao de Xisto (SIX) in Parana State – by Octo-
current market scenario, characterised by the ber 30. It. Additionally, it has been instructed
entry of imported product by third parties and to unload one more plant, Refinaria Presidente
by the divestment process of refining assets, it Getulio Vargas (REPAR), by December 31.
is necessary to promote improvements in some Over the last 18 months, Petrobras has been
commercial and operational clauses,” it stated. operating its refineries significantly below
The state-owned company controls 13 full capacity in response to the coronavirus
refineries with a combined installed capacity (COVID-19) pandemic. When the pandemic
of 2.2mn barrels per day (bpd). It has included hit its first peak in April 2020, the plants were
eight of these plants in its privatisation plan and operating at 60% capacity on average. ™

ARGENTINA
Santa Fe seeks bids for pipeline expansion

THE northern Argentinian province of Santa Fe President Alberto Fernández unveiled a major
has launched a new tender for the purpose of gas stimulus plan last October.
expanding the Southern Regional Pipeline, a key The package, known as Plan Gas 4, provides
transportation route for natural gas. for the national oil company (NOC) YPF to
The starting price of the contract for expand- invest $1.8bn in gas production over the next
ing Gasoducto Regional Sur, as the link is known three years. It has also established a four-year
locally, has been set at $8.27mn, according to a tender scheme under which producers will be
press statement from the provincial govern- able to offer gas to the market at a price of up to
ment. Bidding is due to begin on October 14, $3.70 per mmBtu. The tenders are designed to
and potential investors will have to submit their secure supplies of 70mn cubic metres per day,
applications remotely through the Google Meet equivalent to just over half of the Latin Ameri-
platform, it added. can country’s current production.
Santa Fe’s infrastructure and public services The gas plan is expected to save Argen-
ministry is carrying out the tender via a provin- tina around $5bn in imports to cover seasonal
cial gas and renewable energy company. The demand, officials have said. Argentina had one
winner of the bidding contest will have to lay 18 of the strictest lockdowns in the early stages of
km of new pipe so that gas can begin flowing to the pandemic, and as a result, operations in the
six additional towns in the province: Carmen, oil and gas sector virtually ground to a halt. ™
Teodelina, Casilda, Venado Tuerto, Melincué
and Firmat. When finished, the link is expected
to benefit thousands of industrial, businesses
and residential consumers in these towns.
The expansion contract is being tendered as
Argentina’s government proceeds with efforts to
encourage the operators of natural and uncon-
ventional gas fields to boost production follow-
ing the coronavirus (COVID-19) pandemic. Gasoducto Regional Sur (Photo: Gentileza)

P12 www. NEWSBASE .com Week 37 16•September•2021