SUBSCRIBE
PROFILE

Brazil’s free gas market reaches 13.3 Mcmd with unprecedented industrial shift

Brazil’s natural gas market liberalisation has led to the migration of 13.3 million cubic metres per day, dominated by the ceramics and steel sectors, disrupting the national competitive balance.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Brazil’s open access natural gas market has reached a major milestone with the migration of 13.3 million cubic metres per day (Mcmd) from traditional distribution channels. This shift is part of an accelerated liberalisation process, driven by a structural reorganisation of industrial energy supply. According to a recent study, this transformation has involved 68 industrial consumers, with the largest players alone accounting for more than 8.7 Mcmd, highlighting the concentration of the trend among major industrial users.

Ceramics and steel sectors lead the transition

The ceramics sector accounts for 40% of the companies that have moved to the free gas market, with demand reaching 3.3 Mcmd. The steel industry matches this volume, placing both sectors at the forefront of the transition from Local Distribution Companies (LDCs). Together, they represent 50% of the total migrated volumes.

Three suppliers dominate the competitive landscape. Petróleo Brasileiro S.A. (Petrobras) leads with 25 contracts focused on large industrial clients. Galp Energia targets medium-sized companies with 21 contracts. Edge Energia has positioned itself with a balanced strategy across segments and holds 18 contracts. These three companies together control 67% of the market share.

Regional disparity and competitive dynamics

The Southeast region accounts for 89% of the free market volumes migrating from LDCs, becoming the main battleground for suppliers. The South is expected to become the next strategic focus, while the Northeast remains difficult to penetrate due to structurally lower price levels.

Most active contracts have a duration of up to three years. Their renewal, combined with ongoing migration, is likely to intensify competition. Smaller contracts — below 0.1 Mcmd — are numerous but represent only a small portion of the total volume, confirming that large industrial consumers are driving the transformation.

A multisectoral shift in the industrial landscape

Beyond ceramics and steel, liberalisation is impacting other sectors including construction, mining, refining, fertilisers, paper, chemicals, and glass manufacturing. This sectoral diversity highlights the extent of the ongoing reshaping of the country’s energy supply structure.

  • Popular on energynews.pro
Drone strike cuts electricity in Khartoum and Port Sudan, two rescuers killed
Voltalia launches construction of hybrid solar-storage power plant in French Guiana
TerraWind strengthens its onshore wind portfolio in Japan with 255MW transferred
T1 Energy launches construction of 2.1GW solar cell plant in Texas
Holtec and MVM join forces to deploy small nuclear reactors in Hungary
Canberra imposes mandatory gas reserve to secure domestic supply
The Australian government will require up to 25% of gas extracted on the east coast to be reserved for the domestic market from 2027, in response to supply tensions and soaring prices.
Baker Hughes to supply six LM9000 turbines for Commonwealth LNG terminal
Baker Hughes will deliver six gas refrigeration trains for Commonwealth LNG’s 9.5 mtpa export project in Louisiana, under a contract with Technip Energies.
Shanghai Electric launches 625 MW upgrade to strengthen Iraq’s power grid
Shanghai Electric begins a combined-cycle expansion project across four Iraqi provinces, aiming to boost energy efficiency by 50% without additional fuel consumption.
Zefiro completes $1.5mn gas project in Pennsylvania and prepares $5mn operation in Louisiana
Zefiro Methane, through its subsidiary Plants & Goodwin, completes an energy conversion project in Pennsylvania and plans a new well decommissioning operation in Louisiana, expanding its presence to eight US states.
France: the Council of State bans coalbed methane exploitation in Lorraine
The Council of State has cancelled the authorisation to exploit coalbed methane in Lorraine, citing risks to the region's main aquifer and bringing an end to a legal battle that began over a decade ago.
JERA signs seven-year LNG supply deal with Hokkaido Gas
Japanese power producer JERA will deliver up to 200,000 tonnes of liquefied natural gas annually to Hokkaido Gas starting in 2027 under a newly signed long-term sale agreement.
Israel seals a €30 billion gas contract with Egypt
An agreement announced on December 17, 2025 provides for twenty years of deliveries through 2040. The package amounts to 112 billion new Israeli shekels (Israeli shekels) (NIS), with flows intended to support Egyptian gas supply and Israeli public revenues.
ADNOC raises up to $11bn to finance the Hail and Ghasha offshore gas project
Abu Dhabi’s national oil company has secured a landmark structured financing to accelerate the development of the Hail and Ghasha gas project, while maintaining strategic control over its infrastructure.
Sawgrass LNG marks eight years of liquefied natural gas deliveries to The Bahamas
U.S.-based Sawgrass LNG & Power celebrates eight consecutive years of LNG exports to The Bahamas, reinforcing its position in regional energy trade.
Kinder Morgan restores EPNG capacity at Lordsburg earlier than expected
Kinder Morgan restored the EPNG pipeline capacity at Lordsburg on December 13, ending a constraint that had driven Waha prices negative. The move highlights the Permian’s fragile balance, operating near the limits of its gas evacuation infrastructure.
ENGIE commissions 875 MW of flexible capacity to support Belgian grid
ENGIE activates key projects in Belgium, including an 875 MW gas-fired plant in Flémalle and a battery storage system in Vilvoorde, to strengthen electricity supply security and grid flexibility.
Hungary signs five-year gas deal with Chevron despite ties to Moscow
Hungary has signed a contract with US company Chevron to import 400mn m³ of LNG per year, while maintaining a structural dependence on Russian gas through a long-term agreement with Gazprom.
Subsea7 secures $300mn contract for Gorgon Stage 3 project in Australia
Chevron Australia awards Subsea7 a major contract for subsea installation on the Gorgon Stage 3 project, with offshore operations scheduled for 2028 at 1,350 metres depth.
Ovintiv signs 12-year deal for access to Cedar LNG liquefaction capacity
Ovintiv has entered into an agreement with Pembina Pipeline Corporation to secure 0.5 million tonnes per annum of LNG liquefaction capacity over 12 years, strengthening its export outlook to Asian markets.
TotalEnergies sells 9.998% stake in Malaysia’s SK408 block to PTTEP
TotalEnergies has completed the sale of a minority stake in a Malaysian offshore gas block to PTTEP, while retaining its operator role and a majority share.
Brussels eases methane stance to secure gas imports
The European Union will apply its methane emissions rules more flexibly to secure liquefied natural gas supplies from 2027.
Caracas ends gas trade with Trinidad and Tobago after tanker seizure
Venezuela has ended all energy cooperation with Trinidad and Tobago after the seizure of an oil tanker carrying crude by the United States, accusing the archipelago of participating in the military operation in the Caribbean.
National Fuel raises $350mn through private placement to fund strategic acquisition
National Fuel has secured $350mn in a private placement of common stock with accredited investors to support the acquisition of CenterPoint’s regulated gas business in Ohio.
François Michel appointed CEO of GTT after record year
GTT appoints François Michel as CEO starting January 5, separating governance roles after strong revenue and profit growth in 2024.
Washington demands methane exemption until 2035 to protect its LNG exports
The United States is requesting a derogation from EU methane rules, citing the Union’s energy security needs and the technical limits of its liquefied natural gas export model.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.