SEATTLE (Oil Monster): Brazil is preparing to review a new natural gas marketing policy aimed at expanding domestic gas use and increasing competition in the sector. The National Energy Policy Council (CNPE) is scheduled to meet on July 30 to consider a resolution to this effect.
The proposed policy would replace the current framework introduced in 2018, under which Pré-Sal Petróleo SA (PPSA) is authorized to sell the government's oil and natural gas, mainly through public auctions. The revised approach seeks to encourage greater gas consumption and reduce the dominance of a single supplier.
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A key objective of the proposal is to strengthen PPSA's role in marketing government-owned gas. However, progress has been slowed by a long-running dispute between PPSA and Petrobras over access to critical gas infrastructure.
As part of efforts to resolve these issues, Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP) recently launched a public consultation on rules that would guarantee fair and non-discriminatory access to gas transportation and processing infrastructure.
The government is also advancing the proposed Gas Release program, which would require dominant suppliers to sell part of their natural gas to marketers or large consumers. The program is expected to create more opportunities for new market participants.
However, Petrobras, has raised opposition to the plan. According to them, mandatory sales alone will not increase gas supply or lower prices. Furthermore, it could discourage future investment, Petrobras cites.
