TBG to place Short-Term Products for sale as of October 10th

n September 10th (Thursday), the TBG will make the acquisition of Short-Term Products, a pioneering business format for the natural gas market in Brazil, available on its Capacity Offers Portal (POC). From that date, interested companies will have access, by means of the electronic address ofertadecapacidade.tbg.com.br, to daily, monthly and quarterly natural gas transportation contracts.

According to the TBG CEO, Erick Portela, the aim of the initiative is to provide distinctive services offering logistics solutions for the transportation of natural gas in Brazil. He points out that, “This is an acclaimed format in the European market and the TBG is pioneering it in Brazil, which is to say, it is the first and only one to offer this type of product. The short-term products enhance contract flexibility and promote liquidity in the market”.

The TBG CEO also says that the Short-Term Products enable the shipper to organize its transportation capacity portfolio and adapt to seasonal factors. He adds that, “For the TBG, this is very important, as this type of product provides more market options. Consequently, we believe that the initiative ought to attract more buyers (shippers)”.

On August 21st, the National Agency for Petroleum, Natural Gas and Biofuels (ANP) approved the TBG's selling of Short-Term Products, under Official Ruling nº 1,127/2020. And, shortly, the TBG will announce the dates of the auctions for the acquisition of Short-Term Products.

How to buy

To purchase Short-Term Products, interested companies must access the TBG’s Capacity Offers Portal (POC), where they can register as users (with login and password).

After completing that step, they will have access to the Shipper Information Bulletin, the Registration process, Financial Assessment, Contract template, Transportation Capacity application and completion of the Contract. The Registration process is performed only once and keeping it updated is the responsibility of the Shipper.

During this process, the Shipper will declare the amount of gas to be transported within the contractual period and the entry and exit points.

After signing the master agreement, which will speed up the acquisition process, the customer will be able to access products in the daily, monthly or quarterly formats. The signed contract is valid until December 31st of the current contractual year.

The products

The TBG will initially offer products whose capacity is available, which means capacity that is not already under contract.

The first offer window will be for the quarterly product, a format whereby interested parties may close contracts for the subsequent quarter. The availability of quarterly contracts will always arise one month prior to the following quarter. In September 2020, for example, the quarter running from October 1st to December 31st will be open. And in December 2020, the window for the 1st quarter of 2021 will be open, and so on. There will be four windows a year.

The offering of monthly contracts will run on a monthly basis. So, in September, companies will be able to sign the monthly contract covering the month of October, and so on over the subsequent months.

The daily product will only be offered after checking the remaining capacity not taken up by the monthly products. It can be purchased by buyers at least five days in advance.