Brazilian Copagaz signs an unprecedented agreement to import kitchen gas from Argentina

By Marta Nogueira

RIO DE JANEIRO, Apr 7 (Reuters) – Copagaz, Brazil’s largest kitchen gas marketer, closed a historic agreement to import 7,600 tons of the product from Argentina, becoming the first private company to bring in a Liquefied Petroleum Gas ship (LPG) to the country, its vice president of operations told Reuters.

The agreement marks an important step in the strategy of the company that seeks to diversify its suppliers beyond Petrobras, at the same time that it wants to reduce its dependence on the national product due to the concern that future owners of refining units will not prioritize LPG , when the state oil company plans to sell eight refineries.

Agnaldo Inojosa explained that the spot contract, signed with Transportadora de Gas del Sur (TGS) in December, foresees the delivery of three loads of LPG, between April and May at the Terminal de Gas del Sur (Tergasul), in Canoas, Río Grande do Sul. The first ship has already left Argentina.

“It will be the first private LPG nationalized ship in Brazil outside the Petrobras System,” said Inojosa, explaining that historically all imports of the product have been marketed by the oil company. “The first private company that has brought an LPG boat is Copagaz.”

As the product comes from a Mercosur member country, the transaction is tax-free. In addition, the proximity between the nations will allow transportation to take place in just two days, according to the company.

(By Marta Nogueira; Edited in Spanish by Javier Leira)