Petrobras, partners extend gas processing agreements for UTG Catu complex
Petroleo Brasileiro SA (Petrobras) has signed long-term amendments to agreements with PetroReconcavo SA, Brava Energia SA, and Origem Energia SA governing access to natural gas processing at the Petrobras-operated 2-million cu m/day Catu natural gas processing unit (UTG Catu), in Pojuca, Bahia, Brazil.
Effective immediately, the amended agreements ensure the continued processing of gas production from Bahia’s onshore fields, providing greater predictability for the sector and reinforcing UTG Catu’s strategic role as essential infrastructure for bringing Bahia’s onshore gas production to market, Petrobras said in a statement Aug. 19.
The operator said a key development of the amendments is an extension—beginning in 2028—of the period for which processing capacity is guaranteed for the UTG Catu, offering greater reassurance for the involved producers while improving operational reliability of the gas processing complex.
The amendments also allow for the partners to make unspecified updates to commercial and operational terms of the agreements moving forward in order to reduce costs and help make better use of the regional natural gas infrastructure, according to the companies.
"The understanding between the companies reaffirms the importance of shared infrastructure as a means of increasing the efficiency and competitiveness of the natural gas market,” said Álvaro Tupiassu, Petrobras’ executive manager for gas and energy,
"By strengthening the sharing of existing infrastructure, the [amended agreements enhance] the competitiveness of Brazil’s onshore sector, [as well as help increase] operational efficiency [of UTG Catu while] promoting the continuous modernization of processes, systems and equipment,” added José Firmo, PetroReconcavo’s chief executive officer.