Opening The Gas Market May Bring Wave Of Privatizations In The Distribution Sector

Written by Renato Oliveira

Published on 16/07/2019 at 01:00

Updated on 15/07/2019 at 23:12

Onda de privatizações

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According to Experts, Government Program Will Cause Relevant Sector Companies to Sell Their Stakes in Distribution

The New Gas Market Program, presented at the end of June by the government, is expected to cause the most prominent companies in the sector to trigger a wave of privatizations and, in doing so, attract large international and local companies to evaluate the assets.
This sentiment is shared by sector experts, although most believe that the speed at which this will happen may not align with the government’s expectations.

The government relies on the gas opening to foster Industrial GDP growth, having even presented a target of 10% growth.

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Against Their Will

However, the states are expected to oppose such government measures, as many of them will not want to lose control over their gas companies.
This is the main reason experts believe that privatizations will occur, but not at the speed expected; in favor of the government, there might be a trade-off with incentives, such as debt renegotiations for the states.

One of the states that has already shown support for privatizations is Rio Grande do Sul, but it is still limited, and according to experts, this wave could be like a pebble in a pond, but it will happen.

Also read here on your CPG portal! Australian oil company wants to buy Petrobras field in the Santos basin!

Opening The Gas Market May Bring Wave Of Privatizations In The Distribution Sector

According to Experts, Government Program Will Cause Relevant Sector Companies to Sell Their Stakes in Distribution

Against Their Will

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Opening The Gas Market May Bring Wave Of Privatizations In The Distribution Sector

According to Experts, Government Program Will Cause Relevant Sector Companies to Sell Their Stakes in Distribution

Against Their Will

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Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

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