"It is important that we vote and approve bill 4,476/2020 later this year, which establishes the new legal framework for Brazil's natural gas sector," said Minister of Mines and Energy, Bento Albuquerque, as he participated in the 25th Annual Meeting of the Chemical Industry 2020.
"Last month we completed 25 years of the constitutional amendment that ended Petrobras' monopoly in the oil and natural gas sector and now is the time to celebrate, also this year, the approval of the legal framework that will allow competition in the gas sector and increase the competitiveness of the national industry," he added.
The bill, approved in early September by the House of Representatives and which is being processed in the Federal Senate, is the replacement of the current concession regime by the authorization in the activity of transporting natural gas.
In the concession system, the private company needs to win an auction of the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to participate in the gas market. In the authorization system, it is enough that the company presents a project for the construction or expansion of pipelines after public call and wait for the approval of the ANP.
In addition, the text provides that such authorisations will be indefinite and may be revoked, among other reasons, only at the request of the undertaking, if it goes bankrupt, if the pipeline is deactivated or if the company severely fulfils obligations.
The project also ends the exclusivity of the states in the activity of natural gas distribution, allowing the exploitation of this service also by private companies of electricity, and provides mechanisms to enable the deconcentration of the gas market. Currently, Petrobras participates with 100% of import and processing, and about 80% of production.