Oil & Gas

02 Oct 2021

Brazil Prepares Moves to Smooth Gas Market Opening

02 Oct 2021  by   
The Brazilian government is preparing a new resolution to solve some of the most urgent pending matters in the soon-to-be-liberalized natural gas market.

The Ministry of Mines and Energy is calling players in several links of the gas chain to ask them what legal guidance and market transition rules the government can develop immediately to reduce risks that gas buyers and sellers are not willing to take when moving to the open market.

The amendment being proposed will update the national energy policy council (CNPE) Resolution No 16, published in 2019, considered a milestone for the domestic natural gas sector. A source participating in the discussion told Argus that other matters regarding the natural gas industry can be addressed in the new resolution, such as taxation.

Since the promulgation of the new gas law in April, the natural gas industry has been awaiting updates in the sector regulation that must be addressed by the federal oil and gas regulation agency, ANP. Two of nine planned measures that have to be published by ANP should already be in place, according to the regulatory agenda, but they have been delayed. The other seven are due between September and December.

The amendment of Resolution No 16/2019 can help players define gas trading and transportation issues that are still unclear.

A participant in the discussion process for the new CNPE resolution said the text has yet to be finalized and the process may still take several weeks.

Resolution No 16/2019 was an important step Brazilian authorities took towards the opening of the gas market, establishing that the Brazilian government must work towards the creation of a "competitive" gas market in the country and to the entry of new players in the sector.


More News