Developing LNG and Gas-to-Power Projects in Brazil

71 Pages·2017·6.54 MB·English

Developing LNG and Gas-to-Power
Alexandre Chequer
Jose Valera
Projects in Brazil
Débora Yanasse
November2017
Tauil & Chequer Advogados in association
with Mayer Brown
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Overview
-Navigating Brazil’s opportunities for investment in gas and power projects
Session 1
-UnderstandingBrazil’s proposed new legal frameworkfor the gas and
powerindustries
LNG Power
Session 2
Shipping Regas
Regasification
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3
Gas Industry Institutional Structure
RepublicPresidency
CNPE MME
Policy
NationalEnergyPolicy MinistryofMinesand
EnergyResearch
Council Energy
Company
FFeeddeerraall
Regulation
NationalAgencyof
Petroleum,NaturalGas
andBiofuels
Policy
Statesor
State & StatesRegulatory
Agencies
Regulation
4
Federal x States Jurisdiction over Gas Activities
Upstream Exploration & Production
Importation & Exportation
Storage
PPrroocceessssiinngg
Federal
Midstream &
Liquefaction & Regasification
Downstream
Transportation
Shipping
Marketing
State Downstream Distribution ...
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Federal Gas Regulatory Framework
FEDERAL LEGISLATION
2009 2010 2017
GasLaw(Law GasDecree
No.11,909/09) (DecreeNo.
regulatesthe 7,382/2010)
processing, regulates
storage, specificaspects IMPROVEMENTS TO THE GAS LAW AND GAS DECREE
liquefaction, ofGasLaw
regasification
andtradeof
nnaattuurraallggaass
FFEEDDEERRAALL RREEGGUULLAATTIIOONN
2011 2012 2013 2014 2015 2016
ANPResolutionNo. MMEOrdinanceNo. ANPResolutionNo. ANPResolutionNo. ANPResolutionNo. ANPResolutionNo.
50/2011- 232/2012- 37/2013–gas 15/2014–tariff 52/2015- 11/2016–third
constructionand authorizationforgas pipelinecapacity criteriafor construction, partyaccesstogas
operationofLNG importation expansion transportation expansionand pipelines,gas
terminalsand pipelines operationofLNG capacityassignment
pipelines ANPResolutionNo. ANPResolutionNo. terminalsand andgasswap
42/2012- sharingof 51/2013– pipelines
ANPResolutionNo. oil,gasandbiofuels authorizationforthe ANPResolutionNo.
51/2011–registerof pipelines gascarriers 40/2016–gas
self-producerand transportation
self-importer informationtoANP
ANPResolutionNo.
52/2011–
authorizationforgas
trading
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States Gas Regulatory Framework
STATES’ LEGISLATION – GAS DISTRIBUTION SERVICES
FEDERAL LEGISLATION
1995 2009 2010
Federal GasLaw(Law GasDecree
Constitution No.11,909/09) (DecreeNo.
FederalConstitution, art. 25, § 2º:
AmendmentNo. 7,382/2010)
5/1995allows States must perform directly or
Statesto
tthhrroouugghh ccoonncceessssiioonn tthhee llooccaall
ddeelleeggaatteeggaass
distribution piped gas distribution services Self-producer,self-importerandfreeconsumer
servicesto
concessionaires
STATES’ CONCESSIONS
1991 1997-1999 2000 2017 2018
ExecutionofGasDistributionConcessionContracts PublicBidforNew
GasConcessioninSão Studiesfor Privatization
Paulo Privatizationof9 Processexpected
PrivatizationofRiodeJaneiroand States’Gas to3Q2018
SãoPaulo’sGasConcessionaires Concessionaires
DifferentTariffandBy-passRegulationsamongtheStates
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Verticalized Monopoly Structure
95% of the gas market share
Petrobras used to have
Upstream (Natural Gas E&P)
TBG TSB
NTS and NTN
Midstream (LNG Terminals and (Gas Transportation
(Gas Transportation)
Processing Plants) Services Provider)
Downstream (LPG Distributon) (Gas Distributon)
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Deverticalized Competitive Structure
Upstream Midstream
Downstream
LNGTerminals
Onshoregasfields:
Juruá(AM) TBG
Azulão(AM)
RiachodaForquilha(RN)
TSB
Buracica(BA)
Miranga(BA)
Offshoregasfields:
CearáMar(CE) NTN
Merluza(SP)
RioGrandedoNorteMar(RN)
NTS
SergipeMar(SE)
Enchova(RJ)
Pampo(RJ)
Pargo(RJ)
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Gas Market Overview: Demand Drivers
78 MM m³/day
Natural Gas Demand in June/2017:
Market Distribution (MM m3/day)
45
40
35
3300
25
20
15
10
5
0
Source:MME NaturalGas IndustryMonthlyReport(June2017)
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