New Law Gas

Senators press for vote on new gas law, which provides for market deconcentration and price reduction

T&B Petroleum/Agência Senado
30/11/2020 22:58
Senators press for vote on new gas law, which provides for market deconcentration and price reduction Imagem: Petrobras Agency Visualizações: 788 (0) (0) (0) (0)

Senators this week demanded the vote on the new regulatory framework for the natural gas sector (PL 4,476 / 2020), which has been in the Senate since September, when it was approved by deputies. The text foresees devolution of the market, which, for many parliamentarians, can reduce the price of the product for Brazilians.

 

In the deliberative session last Wednesday (25th), Senator Lasier Martins (Pode-RS) drew attention to the project, highlighting that it is a claim of the business sector.

 

- I would like to ask that the gas regulatory framework, which deals with important points such as transportation, import, export, distribution, commercialization, come to the agenda as soon as possible. I make this request on behalf of several companies in the state of Rio Grande do Sul and our Fiergs [Federation of Industries of the State of Rio Grande do Sul] - he said.

 

On Thursday (26), other senators demonstrated on social media. The leader of the PSL, Major Olimpio (SP), wrote that the benefits of opening the market must be “universalized”. "With the reduction in the price of the gas cylinder, it will be possible to reduce the cost of energy for Brazilian families and improve the lives of the population," he said.

 

National production 

Senator Dário Berger (MDB-SC) argued that the new rules could stimulate national production of natural gas and reduce the country's dependence on imports of the product.

 

In 2019, Brazil consumed 64.6 million cubic meters of gas per day, on average, according to the Brazilian Association of Pipeline Gas Distribution Companies (Abegás). In the same year, the country imported 9.8 billion cubic meters, according to the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

 

“The opening of the market will attract investments, increase our production capacity, generate jobs and reduce costs and the final price of products. Vital for the economic recovery ”, stressed Berger.

 

Senator Fernando Collor (Pros-AL) also highlighted the economic potential of the legislation, if passed.

 

“The new gas law will modernize the market and help Brazil's growth, in addition to increasing competition in the sector, attracting investments and generating jobs. It is urgent to modernize market relations ”, he wrote

 

Content 

The new regulatory framework is intended to replace the current legislation on the subject (Law 11.909, 2009). The project replaces the legal model for the exploitation of the natural gas transportation service and for the construction of gas pipelines, exchanging the concession (in which the company must win an auction promoted by the government) with the authorization (in which the company presents a project after a call) public and awaits ANP approval).

 

The text also foresees mechanisms to make possible the deconcentration of the gas market, in which Petrobras participates with 100% of the import and processing and about 80% of the production. The ANP should monitor the market to stimulate competitiveness, using mechanisms such as the compulsory transfer of transport capacity, flow of production and processing; obligation to sell, at auction, part of the marketing volumes held by companies with a high market share; and restriction on the sale of natural gas between companies in the same production areas.

 

Amendments 

The project has received four amendments so far, two of which intend to preserve the concession model. They are from Senator Paulo Paim (PT-RS), who believes that the natural gas sector is “essential and strategic” for the country.

 

Other amendments are to grant access to the gas pipeline network for companies that produce biomethane, by Senator Oriovisto Guimarães (Pode-PR), and to guarantee oil and gas royalties for neighboring municipalities to continental platforms.

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