Strategy and Competitive Advantages

About the strategy

Gasmig is strategically focused on the distribution of natural gas in the State of Minas Gerais, and the operations and investments made over the years have provided an environment of solid cash generation and high growth potential. With a long-term vision, the company is committed to providing 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 installed network, the Company distributed 1.1 billion m³ of natural gas to 82,000 customers located in 46 municipalities.

Natural gas is the fuel that has increased its share in the Brazilian energy matrix the most, rising from 6.5% to 13.3% in the period between 2001 and 2021, according to data released by the Empresa de Pesquisa Energética (EPE). Perspectives for the consumption of natural gas in Brazil are positive for the coming years, both because it is an environmentally cleaner fuel and because of the expansion of the network promoted by the distribution companies. It is worth noting that 53% of the national energy matrix still depends on fossil sources that can be replaced by less polluting sources. Projections by the EPE (Empresa de Pesquisa Energética) indicate that the 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 Resolution SEDE nº 21, of April 27, 2022, Gasmig’s tariff plans were established for the 2022-2026 cycle. This review aims to improve the Company’s efficiency and financial sustainability by providing a solid foundation for natural gas distribution in 2022. The investments recognized by the regulator add up to BRL 1 billion. These resources will be used in the expansion and optimization of the use of the Natural Gas Distribution System, thus Gasmig will provide service to municipalities that represent, today, approximately 60% of the State’s GDP.

Gasmig’s performance and expected growth contribute to increase the company’s prominence in the national energy scenario, increasing the presence of gas in the lives of people and companies of Minas Gerais.

Competitive Advantages



We are signatories to a concession agreement for exploring piped gas distribution services in the state of Minas Gerais, effective until 2053, with clauses that guarantee the maintenance of economic and financial balance and return on invested capital. We define the Company's margins based on five-year tariff revisions, with a defined methodology and incentives for operational efficiency.



We have specific tariffs for different market segments, with full transfer of costs and annual readjustment of margins based on the inflation index defined in the concession agreement. Tariffs are ratified by the regulatory agency and any differences between the ratified cost and the realized cost are determined in a graphic account, which is readjusted daily by the SELIC (main rate of interest of the brazilian Central Bank). Our tariffs seek to ensure competitiveness against substitute energy sources and contribute to maintaining operational efficiency and expanding the natural gas distribution network in Minas Gerais.



We promote diversity, equality and inclusion with a significant impact on the level of social responsibility and empowerment throughout our business structure. This differential brings us diversified insights that contribute to the planning and execution of our strategy.



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.

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