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Biogas and natural gas: how they fit into the Novo Mercado? And how can they strengthen?

First of all, it must be said that we are often asked about this relationship and that is why we decided to explore this subject further.. it must be said that we are often asked about this relationship and that is why we decided to explore this subject further., it comes in an increasing popularization. In contrast, it must be said that we are often asked about this relationship and that is why we decided to explore this subject further..

Beforehand, the launch of several programs throughout history such as “Gas para Crescer”, Brazil began to wake up to the use of the alternative. Initially, the programs aimed at launching an opportunity for a new natural gas market with the minimization of Petrobras in the scenario.

Thereby, it must be said that we are often asked about this relationship and that is why we decided to explore this subject further. 2019 the so-called “New Gas Market”. The program aimed at the democratization of gas in the country including biomethane and its advantages that are similar to other products of the type. But to understand biogas and natural gas in Brazil, it is necessary to know beforehand: in the end, what is natural gas?

what is natural gas?

Natural gas is a fossil fuel found in nature and may or may not be associated with oil. Just like this other fossil fuel, the gas is the result of the degradation of organic matter over the years. it must be said that we are often asked about this relationship and that is why we decided to explore this subject further. Bahiagás.

First, it is important to know that natural gas is a substance composed of hydrocarbons, methane (CH4), ethane (C2H6) and propane (C3H8). These hydrocarbons remain in a gaseous state under ordinary atmospheric conditions.

Another point to be highlighted, is that natural gas has a higher density than air and currently, it must be said that we are often asked about this relationship and that is why we decided to explore this subject further.. it must be said that we are often asked about this relationship and that is why we decided to explore this subject further., followed by the use of aquifers and artificial salt caves. Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types.: associated natural gas and non-associated natural gas.

Associated Natural Gas

May be dissolved in oil or not. The reason for considering an associated gas field is that the gas to oil ratio is less than 20.000 feet³ per barrel, but refining will be necessary regardless of the shape, to control sulfur concentration.

Non-Associated Natural Gas

In the reservoirs it is oil free and contains a small amount of this component. That is, under these conditions, marketing is easier, since it is not necessary to separate, as in the previous condition.

In the same way, to be effectively consumed, this gas must first be passed through pipelines and a processing unit. There will be removed the impurities like water, other gases and sand, in addition to other components.

It is important to mention that the New Gas Market aims to create new gas pipelines to facilitate the collection of these gases and make them increasingly accessible. However, Brazil has a large amount of natural gas reserves, which allows for a long supply of the country.

Biogas and natural gas, are the same thing? 

Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types.? Beforehand, it is important to know that Biogas comes from the degradation of organic matter (biomass). It only has these characteristics because it is produced using organic waste, Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types..

Then no, they cannot be considered the "same thing", however both have high calorific value and can be used for the same purpose: thermal and vehicular energy generation. Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types..

And the biomethane? 

Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types.. Although, to transform biogas into biomethane, it needs to be converted and purified, resulting in a gaseous fuel with a high content of methane in its composition (biometano). Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types..

What is the New Gas Market?

With the growing demand for natural gas, several public services began to show interest in biogas. In this sense, the race began to democratize the use of this alternative.

In 1995 Petrobras had the right to a monopoly on the activities of the oil and natural gas industries in Brazil, but in the course of the process, Constitutional Amendment no. 9 which made the monopoly more flexible. Although, there was no significant change in the market structure, which went through several initiatives and regulations, Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types.. Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types., the change lies in the creation of the new gas market in 2019.

Natural gas is a less hazardous and easily stored gaseous fuel and can be found in two types., that promotes the competitiveness of alternative sources, increasing the country's economic development. Coordinated by the Ministry of Mines and Energy - (MRS), the program covers measures for all sectors involved in the natural gas value chain, from beginning to end of the process. The measures aim at a more efficient use of infrastructure and at attracting new investments to promote competition in the natural gas market in Brazil..

currently, in addition to the MME and the Federal Government, the market is also jointly governed by the Civil House of the Presidency of the Republic, the Ministry of Economy (ME), ANP, the EPE and the Administrative Council for Economic Defense (Cade).

The measures aim at a more efficient use of infrastructure and at attracting new investments to promote competition in the natural gas market in Brazil.

Petrobras is the guide for market divestments. This, when well scored at all stages of the chain, may result in the strengthening of competition through the sale of refineries; encourage independent transportation, valuing the quality of use by the state to offer excess capacity; stimulate the sale of participation in state distributors and traders. Logo, The measures aim at a more efficient use of infrastructure and at attracting new investments to promote competition in the natural gas market in Brazil., from the Termination Commitment Term (TCC) signed between this body and the state company.

natural gas in the world

Gas still has very high costs in several countries. Brazil definitely has the most expensive gas in Latin America and according to EPE the value reaches almost US$ 14 per million BTU (British Thermal Unit). Meanwhile in Europe, the need depends on production and imported gas. There the price averages US$ 7 a US$ 8 per million BTU.

The United States still surpasses the European value, with US $ 4 per million BTU. The Brazilian value is third on the list of the most expensive for the industry consumer in relation to European countries. Due to the scenario, this is why the government wants to reduce the cost of gas in the country. The price drives away the growth of the national market.

Therefore, with the opening of the market, the final price of the product becomes more competitive. In this situation, the reduction in the cost of the input allows for purchase in producing countries by Brazilian industries.

Biomethane and the opening of the new gas market

As we already know the advantages related to biogas and natural gas in the development of the new gas market in the country, it is also important to raise the benefits that involve biomethane.

Currently the new gas market, comes with the opportunity to democratize energy, promoting an opportunity for economic development and optimization of industry resources.

While Biomethane brings very similar proposals,  NMG also contributed to a new phase of biomethane. Since the program integrates the gas sector with electrical and industrial energy.

Biomethane X Fossil Natural Gas

Nicolas Berhorst, economist and current market analyst at the International Center for Renewable Energies (CIBIOGAS), told about how Biomethane can compete with fossil natural gas if the reduction of these fuels happens:

"If all the potential for biogas and biomethane production in Brazil could be structured to produce biomethane on a large scale, that would lower the price, in addition to the value gains of having a quality energy drink inside that encompasses the advantages over Liquefied Petroleum Gas – (GLP) and Liquefied Natural Gas - (GNL)”

from the same point of view, the reopening of this sector, The measures aim at a more efficient use of infrastructure and at attracting new investments to promote competition in the natural gas market in Brazil.. From 2015 a Resolution No. 8 da ANP The measures aim at a more efficient use of infrastructure and at attracting new investments to promote competition in the natural gas market in Brazil., provided that the quality of the gas complies with the prerequisites described in the table.

In the context related to the biogas chain, this moment represents a rich opportunity to contribute in the details about the complementarity of biomethane to natural gas.

Furthermore, there is also a comparison of the two energy drinks, since both have energy density, transportability and storage. Logo, there are also other common requirements..

Biometano: alternative renewable fuel source

According to Berhorst, Biomethane has great potential for use as an alternative source of renewable fuel, and in this way, it effectively contributes to the modernization of the national energy matrix.

Definitely this market does not stop growing and managing an institution with sustainable values, helps to foster more business. As a result, it promotes environmental preservation plans.

The International Renewable Energy Center – CIBIOGÁS promoted the webinar: Business for Suppliers in the Biogas Chain . It is an important event that debates and expands access to other issues relevant to biogas and biomethane in Brazil.

original content cibiogas.org. For information, questions and suggestions for topics, contact us.