In line with Brazil’s Future Fuel Law – which established the National Program to Decarbonize Natural Gas Producers and Importers and Promote Biomethane – the Bolivia-Brazil gas pipeline operator, TBG, is working to enable the injection of biomethane into the transportation system. To this end, the company has developed an advanced conceptual engineering design for a Biomethane Hub, which can be scaled and replicated according to market demand, and it has submitted a model Biomethane Connection Agreement to the regulatory agency, ANP, for approval. TBG’s biomethane injection business model is based on international best practices for biofuel connection, ongoing dialogue with the market and solutions tailored to Brazil’s current regulatory framework.

TBG’s gas pipeline crosses regions with high biomethane potential due to the presence of sugar and ethanol plants, as well as other producers located along the edge of its network. Accordingly, the company designed the Biomethane Hub to provide optimal connections to the transportation system. The project allows for phased capacity expansion, with biomethane delivered either via a dedicated pipeline or by truck, in compressed or liquefied natural gas form. The scale of the facility will be determined by market demand, TBG’s internal analyses and discussions with ANP.

Recently, in connection with Petrobras’ Call for Biomethane Acquisition, several producers approached TBG to learn more about the Biomethane Hub project and potential connections to the transportation system. Biomethane production plants have been identified in the five states along the Bolivia-Brazil Gas Pipeline, particularly in São Paulo and Mato Grosso do Sul. The estimated production potential is around 3 million cubic meters per day, reflecting strong interest from market players. Confirmation of this figure will inform the hub’s design.

Connecting to the natural gas transportation system enables biomethane producers to reach consumers across the entire pipeline network, which is now integrated nationwide. This opens up broader business opportunities, especially in light of the Future Fuel Law, which requires producers and importers to include 1% biomethane in natural gas supplies starting in 2026, followed by gradual increases until reaching 10%.

According to TBG’s commercial director, Jorge Hijjar, the idea is for TBG to serve as a biomethane aggregator by creating hubs that connect smaller producers that individually would not have the scale needed to connect to the transportation system. “TBG’s Biomethane Hub is essential both for advancing the energy transition and for adding a new source of supply. In addition, we have the competitive advantage of a privileged geographic location, given the concentration of agricultural production in Brazil’s Central-South region. We are ready to serve any point along our pipeline network. The transportation system is critical to moving production and scaling up the market,” he said.

TBG is also prepared to support the National Integrated Plan for Natural Gas and Biomethane Infrastructure, developed by the Brazilian government’s Energy Research Company (EPE), which launched a public consultation on its technical methodology note on March 19. The plan aims to foster the development of supply, demand and infrastructure for natural gas and biomethane in Brazil. In this way, TBG can help achieve scale, expand the market and enable producers to secure agreements with consumers along the pipeline network.

Biomethane, which is produced from organic waste, is interchangeable with natural gas for residential, commercial and industrial use, as well as for vehicle fuel – sectors in which TBG already has extensive operations in the states of Mato Grosso do Sul, São Paulo, Paraná, Santa Catarina and Rio Grande do Sul.