The contractual impasse had frozen Rio de Janeiro’s free market development for two years following the initial 2024 migration of CSN, Ternium, and Gerdau, which together consume 1.7 million cubic meters per day. Companies including Braskem, Fábrica Carioca de Catalisadores, Guardian, Saint-Gobain, and a second CSN facility have remained unable to migrate despite consuming less than 100,000 cubic meters per day individually. The standoff centered on divergent interpretations of minimum consumption requirements, with state regulations setting a 10,000 cubic meters per day threshold while concession contracts specify 100,000 cubic meters per day. CSN pursued legal action without first-instance success.
During the Agenersa session homologating the new Petrobras-Naturgy agreement, CSN energy planning manager Vinicius Oliveira demanded accountability for Naturgy’s delays in processing migration requests. Industry representatives through Firjan and Abrace emphasize urgency given that Naturgy’s current Petrobras contracts lock in gas prices indexed near or above 13 percent of Brent through the decade’s end, creating a 20 percent cost disadvantage versus São Paulo according to ARM Consultoria estimates. The distributor opted for full Brent indexation rather than the Henry Hub mix chosen by most Brazilian distributors.
Wood Mackenzie analysis indicates Brazil’s free market growth trajectory will decelerate after rapid expansion that saw customer numbers increase 70 percent annually through early 2026, as large-volume anchor clients have largely migrated and suppliers target smaller consumers with higher per-client costs.
This article was curated and published as part of our South American energy market coverage.
