Natural Gas

Chamber of Mines and Energy Commission approves new legal framework for the natural gas sector

T&B Petroleum/Chamber of Deputies Agency
30/10/2019 14:58
Chamber of Mines and Energy Commission approves new legal framework for the natural gas sector Imagem: Divulgation Visualizações: 3064 (0) (0) (0) (0)

The Mines and Energy Commission approved yesterday (29/10), a proposal that establishes a new legal framework for the natural gas market in the country (PL 6407/13) and others that are being processed together). The text allows companies based in Brazil to operate in this market through authorization from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and no longer by concession.

 

In the current model, a company interested in investing in the sector must win an ANP auction. In the authorization regime, it is enough to present the project and wait for the approval of the agency. The purpose of the change is to unlock investments in the sector.

 

Under the proposal, the transportation, importation, exportation, underground storage, packaging, disposal, treatment, liquefaction, regasification and construction activities, capacity expansion and operation of natural gas processing or treatment units may be authorized. .

 

The rapporteur, Deputy Silas Câmara (Republican-AM), who also chairs the committee, introduced a new wording for the projects, as well as amending deputies.

 

One amendment states that pipelines that do not meet the definitions provided in the text - production flow pipeline, transfer pipeline and transport pipeline - shall be classified by the ANP, including those connecting natural gas processing or treatment units of LNG (LNG) storage or terminal to transport or distribution facilities.

 

Author of the amendment, Mr Christino Aureo (PP-RJ) explains that, according to the rapporteur's initial text, there would be no possibility of obtaining authorization to operate a pipeline that was outside the intended classes. "A clear example of a situation that does not fit into the intended classes is the pipeline that could be built by the owner of a natural gas processing unit to interconnect it to the nearest transport or distribution pipeline," he said.

 

The approved text establishes that it will be up to the ANP to monitor the functioning of the natural gas market and adopt mechanisms to stimulate efficiency and competitiveness and to reduce concentration in the supply of the product.

 

Another amendment welcomed by Silas Câmara prevents the ANP from restricting the sale of natural gas between producers at levels that could compromise oil production. The new text also makes it clear that only standardized purchase and sale contracts will be required for the commercialization of natural gas in the organized market.

 

Featured 

Also approved was a highlight of the new milestone that excluded from the proposal the need for the Energy Research Company to survey the gas supply and the respective distribution network to support the definition of the maximum generation price to be charged by future thermoelectric plants.

 

Procedure 

The approved text will now be considered conclusively by the Economic Development, Industry, Trade and Services committees; Finance and Taxation; and the Constitution and Justice and Citizenship Commission.

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