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Brazil’S Natural Gas Market Expands: Prio Breaks Free From Petrobras Monopoly
(MENAFN- The Rio Times) Prio, a Brazilian oil and gas company, has launched direct sales of natural gas to the domestic market. This strategic move marks a significant shift in Brazil's energy landscape.
On January 2, 2025, Prio announced its entry into direct natural gas sales. The company's stock responded positively, closing 1.54% higher on the first trading day of 2025, outperforming the Ibovespa index.
Gustavo Hooper, Prio's head of trading and shipping, explained to local media the company's new approach: "We now have the opportunity to deliver our gas to end consumers through distributors. This brings us closer to our customers."
Prio's initial production stands at 300,000 m3/day, with ambitious plans to reach 1 million m3/day in 2025. This increase hinges on the start of production at the Wahoo field in the pre-salt area of Espírito Santo.
The company's vertical integration strategy now encompasses both production and sales of natural gas to distributors. This mirrors Prio's approach to oil, which it began selling directly in 2023.
While Prio has reached an agreement with Petrobras to use its infrastructure for gas transportation and processing, Petrobras will no longer have exclusive rights to Prio's product.
This opens up new opportunities for Prio in the Brazilian energy market. Prio's R$4.5 billion ($0.73 billion) investment in the Wahoo field is projected to generate over R$3 billion ($0.48 billion) in royalties.
These royalties will benefit Espírito Santo state and the federal government. The company awaits environmental licensing from IBAMA to begin drilling operations.
This development represents a significant step towards a more competitive and diverse natural ga market in Brazil. It has the potential to impact energy prices and availability for Brazilian consumers and industries.
On January 2, 2025, Prio announced its entry into direct natural gas sales. The company's stock responded positively, closing 1.54% higher on the first trading day of 2025, outperforming the Ibovespa index.
Gustavo Hooper, Prio's head of trading and shipping, explained to local media the company's new approach: "We now have the opportunity to deliver our gas to end consumers through distributors. This brings us closer to our customers."
Prio's initial production stands at 300,000 m3/day, with ambitious plans to reach 1 million m3/day in 2025. This increase hinges on the start of production at the Wahoo field in the pre-salt area of Espírito Santo.
The company's vertical integration strategy now encompasses both production and sales of natural gas to distributors. This mirrors Prio's approach to oil, which it began selling directly in 2023.
While Prio has reached an agreement with Petrobras to use its infrastructure for gas transportation and processing, Petrobras will no longer have exclusive rights to Prio's product.
This opens up new opportunities for Prio in the Brazilian energy market. Prio's R$4.5 billion ($0.73 billion) investment in the Wahoo field is projected to generate over R$3 billion ($0.48 billion) in royalties.
These royalties will benefit Espírito Santo state and the federal government. The company awaits environmental licensing from IBAMA to begin drilling operations.
This development represents a significant step towards a more competitive and diverse natural ga market in Brazil. It has the potential to impact energy prices and availability for Brazilian consumers and industries.
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