New Gas Law

Approval of the Gas Law is decisive for the economic growth of Rio de Janeiro

T&B Petroleum/Agência Brasil 61
19/08/2020 21:00
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Bill 6407, which will institute the New Gas Law, must be approved as it stands at the moment. The evaluation is by federal deputy Felício Laterça (PSL-RJ), who highlights the maturity of the text as the result of intense discussion between government and civil society. For him, the approval is decisive for the Brazilian economic growth, due to the pandemic of the new coronavirus.

 

“In this moment of deep crisis that we are facing, the approval of the law is decisive for the resumption of economic growth in the country, with the potential to attract investments, jobs and foster national industry. This to the extent that, by opening the market and giving legal certainty to new entrants, it will lead to the long-awaited reduction in the price of natural gas and, consequently, of cooking gas, especially in the state, ”says Laterça.

 

Rio de Janeiro was the first state to join the opening of the natural gas market, creating the figure of the free consumer. This profile is similar to what occurs today in the telephony market, in which the user can choose the telephone company, choosing who wants to hire the service.

 

“The state of Rio de Janeiro is the largest generator of natural gas and there are major projects at the federal and state levels, including the creation of an industrial pole in the municipality of Macaé, which should attract dozens of large industries, bringing jobs, generating wealth and development for the region ”, reveals Felício Laterça.

 

According to city hall data, the municipality is the largest natural gas processing hub in Brazil, with a current capacity for processing 19.7 million cubic meters of gas per day. Operated by Transpetro, the Cabiúnas Terminal also accounts for the flow of 16% of the oil produced in the Campos Basin to the Duque de Caxias (Reduc) refineries in Rio de Janeiro and Gabriel Passos (Regap) in Minas Gerais.

 

The city also says that the construction of three more gas-fired power plants in Macaé are in the process of being licensed. The thermoelectric plants should occupy an area of 111 thousand square meters and, for the generation of energy, they will be supplied by natural gas through the gas pipeline from Cabiúnas, which pass near the proposed site for the construction of the units.

 

UTE's Vale Azul I, II and III will operate as independent energy producers, which will be connected to the National Interconnected System (SIN) through Ampla's Distribution System.

 

Approval 

If approved, law 6407/2013 also proposes that companies only need authorization from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which regulates the sector in the country, instead of going through public bidding to build these structures. The exception to this rule are gas pipelines that are operated under a special regime under international natural gas supply agreements.

 

According to the director of electricity and gas of the Brazilian Association of Energy Traders (Abraceel) and deputy coordinator of the Gas Forum, Bernardo Sicsú, the expansion of the gas pipeline network can reduce transportation costs and lower the final price of natural gas. “This simplification and reduction of bureaucracy is essential to accelerate the transformation process in the sector. The benefits will reflect more quickly in the economy ”, he believes.

 

Another promise of the New Gas Law is to break the state monopoly. Today, regulation, contracting and inspection are carried out by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and 80% of gas commercialization is dominated by Petrobras.

 

The deputy highlights this measure as one of the most important points of the rule. "This would avoid new monopolies and, consequently, reduce the value of this important input", he points out.

 

The proposal's rapporteur, Mr Laércio Oliveira (PP-SE), said that the bill could be voted on in the next few days. According to him, there is “a favorable environment” for the approval of the opinion in the Chamber.

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