Connection

popular articles

The European Union Invests 500 Million Euros in Malawi’s Energy Sector
New gas price increase: +11.7% for French households
The United States bets on geothermal energy to meet growing energy demand
ACWA Power acquires energy assets in Kuwait and Bahrain for $693 million
French court suspends wind farm after death of golden eagle

Up to 3.5 million m³ of gas redirected to Brazil’s spot market in 2025

Brazil's gas market shifts toward spot contracts, driven by pricing gaps and greater contractual flexibility for local distributors.

Please share:

Up to 3.5 million cubic metres per day of natural gas could move from long-term contracts to the spot market in Brazil in 2025, according to a study published by consultancy firm Wood Mackenzie. This shift results from strategic use of Take-or-Pay (ToP) flexibility clauses, enabling distributors to capture pricing opportunities ranging between $5.9 and $10.5 per million British thermal units (mmbtu).

This change could redefine contractual relations in Brazil’s gas sector, particularly for Local Distribution Companies (LDCs). The spot market, once seen as an opportunistic tool, is now being used as a viable alternative to firm commitments, according to Javier Toro, Research Director for Gas and Power in the Southern Cone at Wood Mackenzie.

A growing spot market

In 2024, more than 60 contracts were signed on the spot market, amounting to 40 million cubic metres, mostly in the Northeast region. These transactions were mainly concluded during the last week of each month, accounting for 41% of monthly sales. Companies Copergás, Cegás, Bahiagás and SCGás alone accounted for over 95% of traded volumes.

This repositioning stems from stagnant LDC demand, a gradual shift of large industrial consumers to the free market, and the emergence of new trading platforms. Contractual clauses between ToP volumes and Daily Contracted Quantity (DCQ) now allow spot volumes to be integrated without penalty.

Pricing changes and competitive pressure

The report states that Petróleo Brasileiro S.A. (Petrobras), currently supplying 70% of LDC gas, is adjusting its pricing formulas. Prices applied to volumes above ToP thresholds could drop from 11.7% to 10% of Brent value. This change narrows the gap with spot market pricing, even though spot remains competitive amid global Brent volatility and growing pressure from new suppliers.

Greater supply diversity, along with the entrance of new market players, has increased liquidity and introduced alternative commercial models. “If current conditions persist, 2025 could mark a structural turning point in how Brazilian LDCs manage their portfolios,” said Toro.

Register free of charge for uninterrupted access.

Publicite

Latest news

Clearway invests $60mn in wind with acquisition of Tuolumne project
Energy Fuels sets uranium production record at Pinyon Plain mine
TC Energy invests CA$2.4bn in nuclear and natural gas
Air Products posts $1.7bn net loss and exits three US projects
Prospera Energy increases revenue by 38% and strengthens financial positioning

Recently published in

Naftogaz receives €270 million from EBRD to bolster gas reserves in Ukraine

Ukraine will receive a €270 million loan from the European Bank for Reconstruction and Development, backed by a Norwegian grant, to secure gas imports over two winters.
CH4 receives EXIM award for 300 MW gas-to-power project in Guyana
The natural gas-to-electricity project led by CH4 Systems with several partners has been recognised by the Export-Import Bank of the United States for its energy and economic impact in Guyana.
en_1140290943540-20
CH4 receives EXIM award for 300 MW gas-to-power project in Guyana
The natural gas-to-electricity project led by CH4 Systems with several partners has been recognised by the Export-Import Bank of the United States for its energy and economic impact in Guyana.
en_1140290943540-20
Subsea7 and SLB OneSubsea awarded EPCI contract by bp for Ginger in Trinidad and Tobago
Bp awards a contract valued between $150mn and $300mn to Subsea Integration Alliance to develop the offshore Ginger field under a new global framework agreement.
en_1140290947540-18
Subsea7 and SLB OneSubsea awarded EPCI contract by bp for Ginger in Trinidad and Tobago
Bp awards a contract valued between $150mn and $300mn to Subsea Integration Alliance to develop the offshore Ginger field under a new global framework agreement.
en_1140290947540-18
Oman signs 15-year deal with Amigo LNG to diversify LNG supply sources
OQ Trading has signed a long-term sales agreement with Amigo LNG in Mexico to purchase 0.6 million tonnes of liquefied natural gas annually, with deliveries scheduled to begin in 2028.
en_1140290952540-17
Oman signs 15-year deal with Amigo LNG to diversify LNG supply sources
OQ Trading has signed a long-term sales agreement with Amigo LNG in Mexico to purchase 0.6 million tonnes of liquefied natural gas annually, with deliveries scheduled to begin in 2028.
en_1140290952540-17

Ukrainian gas production falls by 50% after Russian strikes

Russian attacks on Ukrainian gas infrastructure have halved national production, pushing Kyiv to seek alternative import sources to secure winter supply.
Woodside approves a $17.5bn investment for an LNG project in Louisiana
Woodside approves the development of a 16.5 Mtpa LNG facility in Louisiana, marking a key milestone in its global expansion strategy with production targeted for 2029.
en_1140290947540-17
Woodside approves a $17.5bn investment for an LNG project in Louisiana
Woodside approves the development of a 16.5 Mtpa LNG facility in Louisiana, marking a key milestone in its global expansion strategy with production targeted for 2029.
en_1140290947540-17
JERA and Saibu Gas join forces to optimise the operation of the Hibiki LNG terminal
JERA and Saibu Gas have reached an agreement to jointly use the Hibiki LNG terminal to secure liquefied natural gas supply and support their global business development.
en_1140290958540-15
JERA and Saibu Gas join forces to optimise the operation of the Hibiki LNG terminal
JERA and Saibu Gas have reached an agreement to jointly use the Hibiki LNG terminal to secure liquefied natural gas supply and support their global business development.
en_1140290958540-15
Calpine entrusts ExxonMobil with storage of 2 million tonnes of CO2 per year
Calpine and ExxonMobil have signed an agreement to transport and store up to 2 million tonnes of CO2 per year from a natural gas power plant near Houston.
en_1140290951540-15
Calpine entrusts ExxonMobil with storage of 2 million tonnes of CO2 per year
Calpine and ExxonMobil have signed an agreement to transport and store up to 2 million tonnes of CO2 per year from a natural gas power plant near Houston.
en_1140290951540-15

Ecopetrol seeks partners after Shell’s withdrawal from gas projects

Ecopetrol is developing a strategy to ensure the continuity of its offshore gas projects in the Caribbean following Shell's strategic withdrawal.
Washington grants another two-month reprieve for sanctions against NIS
The United States extends until June 27 the suspension of sanctions targeting NIS, the Serbian energy company controlled by Gazprom, providing strategic relief to gas-dependent Serbia.
en_1140290986540-2
Washington grants another two-month reprieve for sanctions against NIS
The United States extends until June 27 the suspension of sanctions targeting NIS, the Serbian energy company controlled by Gazprom, providing strategic relief to gas-dependent Serbia.
en_1140290986540-2
Saudi Arabia reduces crude consumption for power generation by 2030
Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
en_1140290961540-14
Saudi Arabia reduces crude consumption for power generation by 2030
Saudi Arabia plans to reduce its reliance on oil for electricity generation by using more natural gas. This change could free up to 350,000 barrels of crude per day by 2030.
en_1140290961540-14
Miami LNG rebrands as Sawgrass LNG & Power to reinforce its diversified energy strategy
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
en_1140290954540-14
Miami LNG rebrands as Sawgrass LNG & Power to reinforce its diversified energy strategy
The Miami-based liquefied natural gas (LNG) provider announces its name change, marking its expansion into energy solutions while consolidating its commitment to reliable and affordable LNG solutions.
en_1140290954540-14

Morocco Invests in Its First LNG Terminal to Strengthen Energy Security

Morocco is implementing a liquefied natural gas (LNG) terminal project at Nador West Med to diversify its energy supply sources and reduce its dependence on coal.
Woodside signs LNG supply agreements with Uniper for 2 million tonnes per year
Woodside has signed LNG sale and purchase agreements with Uniper, securing the supply of 2 million tonnes per year, confirming strong global demand for LNG.
en_1140290950540-13
Woodside signs LNG supply agreements with Uniper for 2 million tonnes per year
Woodside has signed LNG sale and purchase agreements with Uniper, securing the supply of 2 million tonnes per year, confirming strong global demand for LNG.
en_1140290950540-13
Baker Hughes reports record orders for IET despite a drop in cash flow
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
en_1140290947540-14
Baker Hughes reports record orders for IET despite a drop in cash flow
Baker Hughes posted strong quarterly results, driven by a 9% increase in orders for its Industrial & Energy Technology division, despite a 50% drop in cash flow during the same period.
en_1140290947540-14
Malaysia LNG Gradually Restarts Operations After Major Incident at Bintulu
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
en_1140290962540-10
Malaysia LNG Gradually Restarts Operations After Major Incident at Bintulu
Malaysia LNG is progressively resuming operations following an unexpected shutdown of key modules at Bintulu due to a boiler malfunction, raising questions about the impacts on Asian and international liquefied natural gas markets.
en_1140290962540-10

US LNG moratorium lifted: GTT expects rise in tanker orders

French group GTT anticipates growing demand for LNG tankers following the revival of liquefied natural gas terminal projects in the United States under President Donald Trump’s leadership.
Eni and YPF sign a memorandum of understanding for the evaluation of the liquefied natural gas project in Argentina
Eni and YPF have signed a memorandum of understanding to evaluate Eni's participation in the Argentina LNG project, aimed at developing resources from the Vaca Muerta gas field and exporting up to 30 million tons of LNG per year.
en_1140290948540-11
Eni and YPF sign a memorandum of understanding for the evaluation of the liquefied natural gas project in Argentina
Eni and YPF have signed a memorandum of understanding to evaluate Eni's participation in the Argentina LNG project, aimed at developing resources from the Vaca Muerta gas field and exporting up to 30 million tons of LNG per year.
en_1140290948540-11
bp successfully loads first LNG cargo from Greater Tortue Ahmeyim project
bp has safely loaded the first liquefied natural gas (LNG) cargo from the Greater Tortue Ahmeyim (GTA) Phase 1 project, marking Mauritania and Senegal’s entry into the global LNG export market.
en_1140290944540-12
bp successfully loads first LNG cargo from Greater Tortue Ahmeyim project
bp has safely loaded the first liquefied natural gas (LNG) cargo from the Greater Tortue Ahmeyim (GTA) Phase 1 project, marking Mauritania and Senegal’s entry into the global LNG export market.
en_1140290944540-12
Eni finalises contract for second FLNG unit at Rovuma worth $2.5bn
Eni is set to award a $2.5bn contract for a new floating LNG unit off Mozambique, aiming to intensify the development of the Coral North gas field.
en_1140290960540-9
Eni finalises contract for second FLNG unit at Rovuma worth $2.5bn
Eni is set to award a $2.5bn contract for a new floating LNG unit off Mozambique, aiming to intensify the development of the Coral North gas field.
en_1140290960540-9

Gas conversion of the Émile Huchet plant: 500 jobs secured in Saint-Avold

The coal-fired plant in Saint-Avold will be converted to gas and biogas under a recently approved law, preserving 500 jobs without public financial support.
Mubadala Energy enters US market with stake in SoTex
Mubadala Energy acquires 24.1% of Kimmeridge’s SoTex HoldCo, marking its first foray into the US gas and LNG market.
en_1140290948540-7
Mubadala Energy enters US market with stake in SoTex
Mubadala Energy acquires 24.1% of Kimmeridge’s SoTex HoldCo, marking its first foray into the US gas and LNG market.
en_1140290948540-7
Russia constrained by infrastructure amid Chinese LPG demand
China is increasing imports of Russian liquefied petroleum gas, but Russia's infrastructure limitations complicate the complete replacement of U.S. LPG, despite joint projects aimed at overcoming these constraints by late 2025.
en_1140290965540-2
Russia constrained by infrastructure amid Chinese LPG demand
China is increasing imports of Russian liquefied petroleum gas, but Russia's infrastructure limitations complicate the complete replacement of U.S. LPG, despite joint projects aimed at overcoming these constraints by late 2025.
en_1140290965540-2
Wood Mackenzie: The return of Russian gas threatens the balance of the US LNG market
A lasting peace in Ukraine could revive Russian exports to Europe and weigh on the future of liquefied natural gas projects in the United States.
en_1140290969540-2
Wood Mackenzie: The return of Russian gas threatens the balance of the US LNG market
A lasting peace in Ukraine could revive Russian exports to Europe and weigh on the future of liquefied natural gas projects in the United States.
en_1140290969540-2

Advertising

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

VERVANT

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS