Corporate Profile
Companhia de Gás de Minas Gerais – Gasmig, headquartered in Belo Horizonte, is a mixed-capital company under the indirect control of the State of Minas Gerais. It is also the exclusive distributor of piped natural gas throughout the entire territory of Minas Gerais, by concession granted by the State of Minas Gerais.
In 2022, Gasmig reached the number of 82,582 customers, distributed in 46 municipalities, as follows:
102 large and medium-sized industries;
1.201 small industries and commercial and service establishments;
62 stations for resale of Compressed Natural Gas (CNG);
5 Industrial Compressed Natural Gas (ICNG) distribution companies;
2 distributor of Vehicles Compressed Natural Gas (VCNG)
7 companies in the cogeneration segment, generation and climate;
81.201 connected residential units; and
2 thermal power plants.
In addition to meeting the demand for natural gas, the services provided by the Company reduce environmental impact through the consumption of clean fossil fuels, replacing firewood and other more polluting fuels.
As a result, the competitiveness of Minas Gerais industries is improved and new jobs are created, thus contributing to meeting the principles of protecting the environment, seeking full employment and sustainable development.
Strategy and Competitive Advantages
Gasmig strategically focuses on the distribution of natural gas in the State of Minas Gerais, where its operations and continuous investments over the years have resulted in a robust cash generation environment and significant growth potential. Above all and with a long-term vision, the company is committed to offering efficient and sustainable solutions in the energy sector, taking advantage of expansion opportunities and strengthening its position as a reference in the natural gas market in Minas Gerais.
In 2022, with more than 1,500 km of network installed, the Company distributed 1.1 billion m³ of natural gas to more than 82 thousand customers located in 46 municipalities. In short, natural gas is the fuel that has most increased its share in the Brazilian energy matrix, going from 6.5% to 13.3% share in the period between 2001 and 2021, according to data from the National Energy Balance released by Energy Research Company (EPE).
In fact, the prospects for natural gas consumption in Brazil are positive for the coming years, both because it is an environmentally cleaner fuel and due to the expansion of the network promoted by distribution companies. It is certainly worth highlighting that 53% of the national energy matrix still depends on fossil sources that can be replaced by less polluting sources. According to EPE projections, demand for natural gas should reach a volume of 126 million m³/day in 2032.
The Company is implementing the parameters defined in the second Ordinary Tariff Review (RTO) carried out in 2021. Through SEDE Resolution No. 21, of April 27, 2022, Gasmig's tariff plans were established for the 2022-2026 cycle. Therefore, this review aims to improve the Company's efficiency and financial sustainability, providing a solid basis for the distribution of natural gas in 2022.
The investments recognized by the regulator total R$1 billion. As a result, such resources will be used to expand and optimize the use of the Natural Gas Distribution System. In this way, Gasmig will provide services to municipalities that currently represent approximately 60% of the State's GDP.
Gasmig's performance and expected growth contribute to increasing the company's prominence in the national energy scenario, increasing the presence of gas in the lives of people and companies in Minas Gerais.
Competitive advantages
Predictability
We are signatories to a concession contract for the exploration of piped gas distribution services in the state of Minas Gerais, valid until 2053, with clauses that guarantee the maintenance of economic-financial balance and remuneration of invested capital. We define the Company's margins based on five-yearly tariff reviews, with a defined methodology and incentives for operational efficiency.
Pricing
We have specific tariffs for different market segments, with full pass-through of costs and annual readjustment of margins based on the inflation rate defined in the concession contract. The tariffs are approved by the regulatory body and any differences between the approved cost and the realized cost are calculated in a graphical account, which is readjusted daily by SELIC. Our tariffs seek to ensure competitiveness compared to substitute energy sources and contribute to maintaining operational efficiency and expanding the natural gas distribution network in Minas Gerais.
Diversity
We promote diversity, equality and inclusion with a significant impact on the level of social responsibility and empowerment throughout our business structure. This difference brings us diverse views that contribute to the planning and execution of our strategy.
Market
We operate in an expanding market, which not only contributes to the replacement of more polluting fossil fuels, since natural gas allows the reduction of CO2 emissions and other pollutants, but also contributes to improving the productivity of commercial and industrial customers .
Timeline
1986
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2020
2021
2022
Mission
Develop clean and safe energy solutions using natural gas, creating value for customers, employees and shareholders, contributing to the development of Minas Gerais.
Vision
Double the network extension, expanding operations to four more mesoregions of Minas Gerais not yet served and tripling the number of customers served by 2027.
Values
– Focus on Results
– Professionalism
– Respect for people
– Integrity and Ethics
