Comgas

completed

Comgas is the largest natural gas distribution company in Brazil, with a network of 3,250 km of pipelines covering 41 municipalities in the State of Sao Paulo, and reaching over 400,000 residential, commercial and industrial consumers. Comgas’ predecessor companies date to 1872, with its present operations beginning with privatization in April 1999. Comgas was acquired by a consortium consisting primarily of British Gas and Shell Groups. The company aims to expand the use of natural gas as a cheaper, more environmentally-friendly option than alternative fuels, such as coal, fuel oil or liquefied petroleum gas (LPG). Comgas operates under a 30-year concession to distribute natural gas covering 177 municipalities in Sao Paulo state. Metropolitan Region of Sao Paulo. The concession contract establishes expansion goals for the company, which include achieving 70,000 additional customers and 400 kilometers of new networks within the first 5-year period and a total of 200,000 additional customers within 10 years. Comgas is also active in the promotion of natural gas for vehicles (NGVs), which offer savings of up to 70 % over gasoline and emit less pollution. This commitment includes the operation of nearly 200 NGV filling stations and the conversion of over 100,000 vehicles by the end of 2004. The company expects to reach 200,000 converted vehicles by 2008. Comgas obtains its gas supplies from two geographical sources – Bolivia, via the Bolivia-to-Brazil (BTB) transmission pipeline, and offshore Brazil, by the GASAN/GASPAL transmission pipelines from the Santos/Campos Basins.