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Petrobras PBR has secured a new contract with Portobello, Brazil’s prominent ceramic maker and the biggest natural gas consumer in the state of Santa Catarina, for the supply of natural gas. This partnership not only highlights the oil and gas company’s strategic move into the ceramics industry but also marks a landmark in the expansion of natural gas supply within the free market in Brazil. With this new alliance, With this new partnership, Petrobras demonstrates its strong commitment to providing reliable and customized energy solutions for its industrial clients.
For decades, Petrobras, the integrated oil and gas company, has been a key player in transforming Brazil's energy sector, especially in oil and gas. This new agreement with Portobello marks the company’s successful move into the ceramics industry, a growing and competitive market in Brazil. Portobello, known for the innovation and sustainability in ceramic manufacturing, will benefit from Petrobras’ natural gas supply to improve its energy efficiency and strengthen market position.
By entering into this contract, Petrobras not only diversifies its portfolio but also reinforces strategic ambition to cater to various industrial sectors across Brazil. The deal highlights Petrobras’ ability to adapt and offer customized natural gas solutions that are both cost-effective and operationally efficient.
A key aspect of this partnership is how it strengthens Petrobras’ position in Brazil’s free natural gas market. Traditionally, the natural gas sector in Brazil has been controlled by state-run companies. However, the rise of more flexible, market-based contracts has opened doors for both suppliers and consumers to make agreements that work for both sides. The deal with Portobello highlights Petrobras’ ability to provide competitive energy solutions tailored to the specific needs of large industrial clients, marking a significant step in the development of Brazil’s free natural gas market.
“We are actively working to grow and consolidate our portfolio in the free natural gas market,” remarked Álvaro Tupiassu, executive manager of Gas and Energy at Petrobras. “The recent contracts we have signed, including this new agreement with Portobello, demonstrate that we are taking the right steps. Our focus is on delivering a robust and diversified range of gas products, with flexible contract models designed to offer the best commercial options for our partners.”
Petrobras’ continued investment in infrastructure is crucial in supporting Brazil’s increasing demand for natural gas. The company is committing more than $7 billion to develop critical infrastructure, such as storage facilities, pipelines and distribution networks, to ensure the efficient delivery of natural gas across various industries. As industrial demands grow in Brazil, particularly in the ceramics sector, these infrastructure projects will play a pivotal role in meeting that demand.
By investing in large-scale infrastructure projects, Petrobras is ensuring that it can provide secure, reliable and scalable natural gas solutions that will power Brazil’s industrial future. This infrastructure will not only benefit Portobello but also other industrial players across the country, providing them with the resources they need to thrive in a competitive marketplace.
For Portobello, this partnership is a key move in improving energy efficiency and boosting its competitiveness. As Brazil’s largest ceramic manufacturer, the company understands how important reliable energy sources are to maintaining its leadership in the market. In an industry where production costs are closely tied to energy consumption, having access to natural gas, an affordable and sustainable energy source, helps Portobello optimize operations and improve profitability.
"The ceramics industry’s competitiveness is directly linked to the efficiency of its energy use," explained Luciano Abrantes, CEO of the Portobello Group. "Our partnership with Petrobras provides us with secure access to natural gas and commercial conditions that support our production scale and long-term goals. This is an important step in maintaining our leadership in the market."
With a steady supply of natural gas, Portobello can continue innovating and meeting the growing demand for ceramic products while also staying true to its sustainability objectives. The partnership also helps the company reduce its exposure to fluctuating energy prices, offering more predictable and stable costs.
The partnership between Petrobras and Portobello highlights the growing role of natural gas in Brazil’s industrial energy landscape. As the country’s industrial sector evolves, companies are looking for ways to optimize energy use while maintaining high productivity. Natural gas provides a cleaner, more efficient alternative to traditional energy sources, making it an appealing choice for industries focused on sustainability and staying competitive.
Petrobras, by offering flexible contracts with customizable terms and pricing, positions itself as a valuable partner for businesses in Brazil’s changing industrial environment. The company’s ability to deliver cost-effective, adaptable natural gas solutions makes it a key player in meeting the rising energy demand from industries like ceramics, manufacturing and others.
The new agreement between Petrobras and Portobello is more than just a business transaction, it is a commitment to supporting Brazil’s industrial growth and energy sustainability. By using natural gas as a primary energy source, both companies are helping to create a more competitive and sustainable future for Brazil’s industrial sectors.
Currently, PBR has a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at some better-ranked stocks like Comstock Resources, Inc. CRK, Expand Energy Corporation EXEand Paramount Resources Ltd. PRMRF, each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comstock Resources is valued at $6.84 billion. In the past year, its shares have risen 120.3%. Comstock Resources, an independent energy producer in the United States, holds approximately 1.1 million acres primarily within the highly prospective Haynesville and Bossier shale regions of North Louisiana and East Texas. The company's core business involves the acquisition, exploration, development and production of natural gas and oil from these assets.
Expand Energy is valued at $23.27 billion. In the past year, its shares have risen 25.5%. Based in Oklahoma City, OK, Expand Energy is an independent natural gas production company. With significant interests in shale formations across Pennsylvania, Ohio, West Virginia and Louisiana, Expand Energy focuses on the acquisition, exploration and development of properties for producing oil, natural gas and natural gas liquids.
Paramount Resources is valued at $1.70 billion. Paramount Resources, an energy company in Canada, strategically explores and develops significant conventional and unconventional petroleum and natural gas reserves across key resource-rich areas of Alberta and British Columbia, including substantial net acreage in the Duvernay, Muskwa, Besa River and Montney formations.
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This article originally published on Zacks Investment Research (zacks.com).
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