Petrobras says it will appeal injunctions that suspended the gas readjustment

Petrobras said on Tuesday (29) that it will appeal court injunctions that suspended adjustments in the price of natural gas agreed with distributors in some states, according to a statement released by the company.

Four injunctions were granted, one of which was denied, Petrobras added.

“In these actions in which the injunctions were granted, Petrobras will file the appropriate appeals and actions with a view to establishing a market price for the sale of gas,” stated the company, without detailing the origins of the court decisions.

One of the states that obtained an injunction against the readjustment was Rio de Janeiro.

In the lawsuit filed against Petrobras in Rio de Janeiro, the readjustment rule imposed on the Naturgy concessionaire was questioned, which could raise by up to 50% the price currently charged for the supply of the product, according to a statement by Alerj (State Legislative Assembly), which moved the process.

Petrobras, in turn, said that it started negotiations for a new contract with gas distributors in advance and within the timetable established by the concessionaires within the scope of public calls for proposals that included proposals from the state-owned company and other companies.

“In some cases, for example, Petrobras sent proposals in January 2021”, commented the company.

The company stated that, aiming at better conditions for customers, it offered natural gas distributors products with terms of six months, one year, two years and four years and contractual mechanisms to reduce price volatility, usually indexed to the price of oil.

The oil company revealed that eight concessionaires followed the rite established in public notices and signed contracts with Petrobras. However, in some states, movements were seen with the judicial duty with urgent actions, said the company.

The objective would be “to acquire an advantage different from those obtained in the regular public call processes for the acquisition of natural gas”.

Petrobras highlighted that, of the total consumption of natural gas distribution companies, around half had already contracted for 2022, “whose conditions continue to be strictly complied with in the terms and conditions of previously agreed prices and adjustments”.

And that some gas distributors have opted in recent years for short-term contracts and, therefore, did not yet have contracted supply for the year 2022.

The company also recalled that it meets its gas sales contracts through a portfolio of offers comprising national production and imports of gas from Bolivia and Liquefied Natural Gas (LNG), and that the high demand and limitations of international supply resulted in expressive increase in the international price of the input, which rose about 500% in 2021.