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Government and Compagas Seek Agreement to Protect Industries in PR 05-04-2020

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The Government of Paraná and Compagas (Companhia Paranaense de Gás) are seeking a commercial agreement with Petrobras to reduce the impacts of the COVID-19 crisis, which has paralyzed most businesses.

Therefore, through a proactive dialogue, Petrobras was asked to suspend the take-or-pay and ship-or-pay clauses. This imposes penalties in the event that this does not occur. Therefore, on the part of Compagas, the minimum daily withdrawal of natural gas scheduled according to the commercial conditions agreed upon in the agreement.

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Governo E Compagas Buscam Acordo Para Proteger Indústrias No PR 05-04-2020

Although this initiative was taken after Legislative Decree No. 6, of March 20, 2020, which established the so-called State of Public Calamity at the federal level. This agreement allows the distribution company to have more flexibility. Thus, it is able to adapt to variations in demand in this atypical and challenging moment that Paraná and Brazil are facing.

PURPOSE – The suspension of these clauses is valid until the end of the effects of the event of Act of God or Force Majeure resulting from the COVID-19 pandemic.

Government and compagas

“Regardless of this agreement, which only releases the concessionaire from paying penalties for non-use of the contracted gas, Compagas continues with the same purpose of making every effort to continue providing this essential service, efficiently and safely,” says Compagas CEO Rafael Lamastra.

“The company adopts all preventive measures recommended by health authorities to preserve the safety and health of its employees, customers and the population in the effort to combat COVID-19,” he emphasizes.

Compagas is also among the distributors seeking other conditions from Petrobras, such as greater payment flexibility for the coming months. The Company has already negotiated special conditions with its industrial and commercial customers for the payment of their next invoices.

All negotiations will be evaluated based on user requests registered at the Customer Service Center (3004-3400 – Curitiba and Metropolitan Region) or through electronic customer service channels (compagas.com.br).

NEW CONTRACT – Compagas also secured this week the renegotiation of its contract with Petrobras for the supply of piped natural gas to its customers.