The New Regulatory Framework for the Gas Market in Brazil
A new regulatory framework for gas is under discussion in Brazil. The federal government is assessing possible innovative approaches that may lead to a more open market and a clear vision of accountability for this industry.
The government is committed to resuming Brazil’s leading role in global economics, particularly in terms of productivity and competitiveness.
Both the Minister of Economy and the Minister of Mines and Energy have stated that modernizing the gas sector is one of the main priorities to this administration.
More specifically, the National Council of Energy Policy (CNPE) – an agency that operates under the auspices of the Mines and Energy Ministry – created working groups in charge of assessing the gas regulation in Brazil.
One of them is the Committee for Promoting Competition of Natural Gas Market in Brazil, which gathers experts from the Brazilian Antitrust Council (CADE), the Nacional Agency of Oil and Gas (ANP) and the Energy Research Company (EPE). The goal of this committee is to suggest regulatory measures that will lead to more competition in the Brazilian gas market.
As a result, the federal government expects to see lower gas prices and stronger control standards throughout the entire supply chain, framing it as a successful social public policy.
On Monday, June 24 the CNPE will meet to discuss the new gas market. It is expected to approve guidelines for a more welcoming framework and for the entry of new players in the natural gas market, reducing Petrobras’ market share. CNPE is entitled to mediate interests and proposals that will come up.
This is one of the messages that the Brazilian government is sending to the market to attract the attention of new investments, mainly in the oil and gas sector.