Petrobras to appeal Brazil gas deliveries fine

17 August 2007 – Platts reports that Brazil’s Petrobras will appeal a fine of Real$84.6m ($41.3m) from national electricity regulator Aneel, on the grounds that special circumstances in July led to its failure to deliver natural gas to thermal power plants in some areas of the country.

In a statement Petrobras said several factors beyond its control kept it from delivering all the gas that the National Electric System Operator request during July.

The factors it cited to explain the failure to deliver all the gas needed to supply more than a dozen thermal plants included uncertainties about which generation facilities should be supplied ahead of others, the need to supply more gas to Rio de Janeiro facilities over the period of the Pan American Games in July, an accident that cut part of production from the offshore P-50 platform and delays in obtaining a license for a key gas pipeline.

Petrobras said it would appeal to Aneel to remove the fine.

Aneel said that the fine was to penalize Petrobras for failing to supply gas for around 916 MW of power generation, and that Petrobras had ten days to make an appeal.