On Wednesday (September 9th), the National Agency for Petroleum, Natural Gas and Biofuels (ANP) announced the dates of the auctions for the purchasing of TBG Short-Term Products, with contracts available on a daily, monthly or quarterly basis. The regulator has scheduled the auctions on September 14th for the acquisition of quarterly contracts, September 21st for monthly acquisitions and September 25th for daily contracts (the full calendar with the auction dates is attached).
The transportation capacities offered for short-term contracts are fully available, as they are what remains from the Annual Public Calls to Tender. Interested shippers can apply for contractual capacity for one or more products, by entry point and/or exit zone, according to their interests.

According to the TBG CEO, Erick Portela, the aim of the offer 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, meaning that it is the first and only one to offer this type of product. The Short-Term Products enhance contractual 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 to adapt to seasonal factors.

The ANP says that the fees for the short-term products will be calculated according to a base tariff for transportation contracts arising from the Annual Public Calls to Tender, to which a multiplier will be applied, which varies according to the contractual term ( daily, monthly or quarterly).

Revenues derived from short-term products shall be fully allocated to a Regulatory Account, under the responsibility of the Transporter, and do not comprise and/or form part of the Maximum Allowed Revenue approved by the ANP, as shown in ANP Technical Note nº 013/2019-SIM.

According to the ANP, approval of the launch of these products by the regulatory body and by the TBG is in line with CNPE Resolution nº 16/2019 and with the pillars of the New Gas Market program, thus furthering the transition towards a competitive market for natural gas, as it creates conditions for extending access and increasing efficiency in the operation and use of the transport infrastructure.

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).

As of Thursday (September 10th), the TBG will make registration for the acquisition of Short-Term Products available on its Capacity Offers Portal (POC). From that date, interested companies will have access, through the electronic address ofertadecapacidade.tbg.com.br, to daily, monthly and quarterly natural gas transportation contracts.

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, who will declare the amount of gas to be transported within the contractual period and the entry and exit points.

After signing the master agreement, the shipper 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.

• Quarterly contracts: 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.

• Monthly contracts: 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.

• Daily contracts: 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.

For detailed step-by-step instructions for the purchasing of Short-Term Products through the Capacity Offers Portal, access the TBG channel’s YouTube videos through the links: https://www.youtube.com/watch?v=aZh7J8iNotM&t=8s and/or https://www.youtube.com/watch?v=mtWcjlc2wwI.