By Brazil Stock Guide – J&F Investimentos plans to increase the natural gas volumes handled by its MGas trading unit to 30 million cubic meters a day by 2030 from the current 12 million, a 2.5-fold expansion supported by new liquefied natural gas terminals and the group’s own production in South America.
The strategy was outlined by J&F Natural Gas Trading and Origination Director Thiago Arakaki during Gas & Energy Week in Rio de Janeiro, according to Brasil 247. J&F, MGas and the group’s oil and gas producer Fluxus are privately held and don’t have publicly traded shares.
The additional supply will primarily serve the conglomerate’s industrial businesses and thermal power plants, including projects awarded contracts in Brazil’s latest power capacity reserve auction, known as LRCAP.
J&F expects to support the expansion with two LNG terminals and production from Fluxus, which operates in Argentina, Bolivia and Venezuela and is assessing opportunities in Brazil.
LNG Terminals Scheduled for 2027 and 2028
J&F has leased an LNG terminal in Santa Catarina state from New Fortress Energy Inc. (NASDAQ: NFE) for 10 years. Brazil’s antitrust regulator, Cade, recently cleared the transaction, and operations are expected to begin in July 2027.
A second LNG terminal is planned for Pernambuco state, with completion scheduled for October 2028. The two facilities will give the group additional capacity to import and distribute gas to its industrial and power-generation assets.
“We will have the two LNG terminals coming online in 2027 and 2028,” Arakaki said.
The timing is intended to position MGas for an expected increase in Brazilian gas demand toward the end of the decade, particularly from thermal power plants contracted through the capacity auction.
Fluxus Seeks to Double Argentina Gas Output
Fluxus already produces natural gas in Argentina and Bolivia, as well as about 40,000 barrels of oil a day in Venezuela. The company is also evaluating potential investments in Brazil.
MGas currently manages the allocation of close to 1 million cubic meters a day of the group’s gas production in Argentina. J&F aims to increase that volume to more than 2 million cubic meters a day through investment in existing assets and potential acquisitions.
“The idea is to expand to more than 2 million cubic meters a day. We are evaluating new investments and other opportunities for organic and inorganic growth in Argentina,” Arakaki said.
The expansion would give J&F more control over its gas supply while allowing it to combine regional production with LNG imports. The group’s presence across several South American markets may also create additional options for trading and allocating fuel among its businesses.
Biometane Plan Targets 1,000 Trucks
J&F also plans to expand its presence in the biometane market, using the renewable fuel in part of the 12,000-truck fleet operated directly or by third parties across the conglomerate.
The group aims to have 1,000 trucks running on biometane by 2027. The initiative would create internal demand for the fuel and reduce the use of petroleum-based products in logistics operations.
Biometane is produced by purifying biogas generated from organic waste. Because its properties are similar to those of natural gas, it can be used in compatible vehicles and distributed through some existing gas infrastructure.
Gas Market Shift Expected After 2028
Arakaki expects Brazil’s natural gas market to undergo a broader shift after 2028 and 2029, driven by regulatory changes, new domestic production and higher consumption from thermal power plants contracted in the LRCAP auction.
The outlook includes the expected development of the Raia project, which may add significant volumes of domestic gas supply near the period when J&F’s terminals in Santa Catarina and Pernambuco are due to start operating.
Combining LNG import capacity, upstream production in South America, industrial demand, thermal generation and biometane consumption, J&F is seeking to add 18 million cubic meters a day to MGas volumes by 2030.
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