Brazilian associations Abrace, Abpip and IBP join forces to monitor state laws regarding the natural gas market

Oil and gas organizations Abrace, Abpip and IBP will join forces to monitor state laws in Brazil and create a ranking of natural gas markets, aiming at more transparency in this segment.

The Brazilian Association of Large Energy Consumers and Free Consumers (Abrace), in partnership with the Brazilian Association of Independent Petroleum Producers (Abpip) and the Brazilian Petroleum Institute (IBP) are, this Tuesday, (26/07) , common project for monitoring state laws regarding the sale of natural gas under development. In this way, the gas markets in each Brazilian state will be classified in a ranking by the organizations, which seek to bring more transparency regarding the free trade of fuel in Brazil.

Partnership between Abrace, Abpip and IBP in monitoring state laws for the sale of natural gas will allow for the creation of market rankings 

The current scenario of fuels in Brazil is witnessing a strong commercial opening in the natural gas markets in each state and, to ensure more efficiency and transparency at that time, Abrace, together with Abpip and IBP, will carry out a monitoring of state marketing laws of product.

In Brazil, each state has its own legislation for the fuel market and, at a time of commercial openness, it is essential to verify the quality and commitment to the consumer of these laws.

Abrace currently publishes, on its own account, the State Regulatory Ranking, with the main data and surveys about state legislation regarding the natural gas market. And, with the partnership with Abpip and IBP, the organization intends to continue this work, but with more efficiency and transparency in the surveys, thus improving the studies on how the commercialization of fuel is taking place in each national state.

Thus, Abpip will represent independent oil and natural gas producers in Brazil, while IBP represents not only large oil and gas producers, but also other companies in the industry, such as gas traders and transporters.

The partnership will then allow other parameters to be included in surveys about state laws and the natural gas market in each Brazilian region, not just limiting what is already done by Abrace. And, according to the organizations, work on the first national ranking of regulations should start in August.

Producers and consumers have been working together for fairer state laws and the Abrace ranking will contribute to this

Currently, changes and additions to new state laws regarding the sale of natural gas in each region are counting on the participation and contribution of fuel producers and consumers, who act in search of a fairer regulation.

These agents are still working in an attempt to convince them to keep their rules in line with the New Federal Gas Law, and the Abrace, Abpip and IBP ranking will contribute to this happening. 

IBP's Executive Director of Natural Gas, Sylvie D'Apote, commented on the partnership's future processes and current regulatory outcomes and said: “The participation of other entities, such as IBP and Abpip, will allow this instrument to be improved. with the inclusion of new parameters. We have achieved good results in meetings with regulatory agencies in most states. In Rio Grande do Norte and Amazonas, we managed to improve legislation a lot, facilitating access to the free market by consumers”.

Now, the new ranking by Abrace, Abpip and IBP will bring the views of the different agents that operate in the gas market and could make the state natural gas market even more efficient in all regions of Brazil.