Argus Launches Daily Benchmark for Brazil Spot Gas

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Argus introduced the first assessed daily price for Brazil’s natural gas spot market, based on actual domestic spot transactions.
The new price reference responds to demand for indicators that reflect Brazilian natural gas fundamentals, rather than external benchmarks such as Brent and Henry Hub.
Natural gas represents about 10pc of Brazil’s energy mix, with use concentrated in power generation and industry, but faces challenges from high consumer costs and infrastructure constraints.

New Daily Price Indicator for Brazilian Gas

Global energy and commodity price reporting agency Argus has introduced what it describes as the first assessed daily price for Brazil’s natural gas spot market, aimed at enhancing price visibility in the sector.

The launch takes place in the context of Brazil’s natural gas market having been opened to competition under a regulatory framework approved five years ago. The new assessment is designed to provide market participants with a clear domestic pricing reference derived from real spot market transactions.

Addressing Demand for Domestic Market Transparency

Participants in Brazil’s gas market have been seeking an indicator that better captures the country’s own supply and demand dynamics. While around 70pc of the natural gas supplied in Brazil is sourced domestically, prices in the regulated market continue to be linked largely to external benchmarks, especially Brent crude and the US gas price at Henry Hub. These international references may reflect different market forces than those present in Brazil.

Argus Media chairman and chief executive Adrian Binks said: “As Brazil’s natural gas market embraced competition, we worked closely with market participants to develop an independent price indicator that represents what’s happening in the domestic market. Our new gas price will bring transparency that will benefit the whole market”.

Role of Natural Gas in Brazil’s Energy Mix

Natural gas accounts for about 10pc of Brazil’s total energy supply, with consumption concentrated mainly in the power generation and industrial segments. Its comparatively limited share is attributed in large part to elevated consumer costs and infrastructure bottlenecks.

Despite these hurdles, natural gas is increasingly viewed as a strategic component for Brazil’s energy security and as a potential contributor to the country’s energy transition process.

Argus Contact Details by Region

Argus has provided regional contact points for further information related to its Brazilian natural gas price assessments and broader market intelligence services.

Location	Contact	Phone	Email
London	Seana Lanigan	+44 20 7780 4200	Email Seana
Houston	Elizabeth Frye	+1 713 968 0000	Email Elizabeth
Singapore	Tomoko Hashimoto	+65 6496 9960	Email Tomoko

About Argus Media

Argus describes itself as the leading independent provider of market intelligence for global energy and commodity markets. Its services include price assessments, news, analytics, consulting, data science tools and industry conferences, all intended to clarify complex and opaque commodity markets.

The company is headquartered in London and employs nearly 1,500 staff. It operates 30 offices located in key commodity trading centers worldwide.

According to Argus, companies, trading firms and governments in 160 countries rely on its data for decision-making, situation analysis, risk management, trading facilitation and long-term planning. Argus price assessments are used globally as benchmarks for pricing transportation, commodities and energy.

Founded in 1970, Argus is a privately held UK-registered company owned by employee shareholders and global growth equity firm General Atlantic.

Trademarks

ARGUS, the Argus Logo, ARGUS MEDIA and ILLUMINATING THE MARKETS, along with Argus publication titles and index names, are identified as trademarks of Argus Media Limited. Further information is available under Trademarks from Argus Media.