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[BUSINESS] · Brazil · 8 sources

Gasmig selects Geomit for $1 billion biometano pipeline in Minas Gerais

At the "Cheio de Gás" event in São Paulo, the Ministry of Mines and Energy highlighted the government's Programme Gás para Empregar, noting regulatory reforms, increased supply and competition in the natural‑gas market and the role of biometano in Brazil’s low‑carbon transition.

The Companhia de Gás de Minas Gerais (Gasmig) announced the award of its largest biometano public tender to Geomit, a joint venture of Mitsui Gás e Energia do Brasil and Geo Bio Gas&Carbon. The 10‑year contract is valued at about R$1 billion and includes the construction of roughly 400 km of pipelines to serve the Triângulo Mineiro region, with biometano deliveries expected to begin in April 2028 after licensing and infrastructure work.

The deal aligns with the national Integrated Gas Infrastructure Plan and the upcoming Fuel of the Future Law, which mandates increasing biometano shares in the gas mix from 2026 onward. Industry players such as Ultragaz are also seeing rising demand for green corridors, underscoring a broader shift toward renewable gas in Brazil’s energy and transport sectors.