en.Wedoany.com Reported - Gustavo de Marchi, CEO of Brazilian natural gas distributor Gasmig, stated that the controversy surrounding the reclassification of pipelines needs to be resolved, and believes there is room for consensus with the federal government. He noted that the natural gas industry has spent too much time on empty discussions and must advance substantive agendas as soon as possible. This debate stems from Brazil's New Gas Law, which classifies pipelines with technical characteristics exceeding regulatory limits as federally managed transportation pipelines, potentially affecting the ownership of pipelines currently managed by state governments.
De Marchi took office as head of Gasmig on May 20. He revealed that one of his first actions was to review the company's public tender for biomethane. The project transforms environmental liabilities into clean, renewable energy, aligning with the sustainable development goals of Minas Gerais. The executive also discussed the company's pipeline expansion plans within the state and progress on integration with Cemig, the state-owned electricity distributor of Minas Gerais. He emphasized that Cemig CEO Alexandre Ramos has been effectively advocating for the integration strategy of the two companies, aiming to achieve synergies, improve efficiency, and strengthen the state's energy structure.
Regarding the prospects of integration, De Marchi stated that the two companies are still far from offering a combined utility service of natural gas and electricity, requiring improvements to the legal and regulatory framework, but this is a direction they can aim for. He cited the example of San Diego, California, where both energy sources are provided within the same company, and said Gasmig intends to steer in this direction while respecting the resource endowments of Minas Gerais, such as solar potential in the northern region.
On investment priorities, De Marchi pointed out that pipeline expansion is the main goal. The company is advancing a spur line project from the NTS transportation pipeline, connecting a pipeline from Bragança to Extrema to the Pouso Alegre industrial park. The region is experiencing rapid economic growth, and some companies have already signed letters of intent for natural gas. Once approved, the company can secure investment for the spur line from Extrema to Pouso Alegre, serving several cities in southern Minas Gerais.
Regarding the recent LRCAP capacity reserve auction, which contracted nearly 20 GW of thermoelectric capacity, De Marchi assessed that the thermoelectric potential of Minas Gerais has not yet been fully realized. Several regions in the state, such as Governador Valadares, Montes Claros, Extrema, and Queluzito, have studied but not yet built thermal power plant projects. He believes natural gas plays an important role for the state but needs to become an established policy adopted by the group.
The public tender for biomethane recently launched by Gasmig is the company's first major project. The tender targets the Triângulo Mineiro region, planning to build approximately 400 kilometers of infrastructure with an investment of nearly 1 billion reais. The first phase of the project has a design capacity of 250,000 cubic meters per day, aiming to build an isolated pipeline network using 100% biomethane, with a complete backup system to ensure supply security. The tender deadline is June 3, with contracts expected to be signed by the end of June. Potential anchor customers include CBMM (Companhia Brasileira de Metalurgia e Mineração), LD Celulose, and Mosaic, which have expressed interest in biomethane.
De Marchi believes that the price competitiveness of biomethane will depend on market incentives and the parallel advancement of environmental attributes, rather than relying solely on subsidies. He expects that as commercial viability gradually improves, natural gas may eventually be replaced by biomethane, and large players are moving in this direction.
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