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The New Regulation Unifies the Regulatory Framework for the Production of Oil and Natural Gas Derivatives, Consolidating Oil Refining Activities
ANP – National Agency of Oil, Natural Gas and Biofuels, published on the morning of September 24 the Resolution No. 852/2021, which will regulate the exercise of the activity of producing oil and natural gas derivatives, as well as their storage, marketing, and provision of service.
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According to the Agency, the goal is to simplify the regulatory process and reduce costs for agents and the ANP itself, while maintaining the best operational safety practices in the production of derivatives.
The Resolution Will Come into Effect on October 1, 2021.
The new regulation unifies the regulatory framework for the production of oil and natural gas derivatives, consolidating the activities of oil refining (ANP Resolution No. 16/2010), natural gas processing (ANP Resolution No. 17/2010), gasoline and diesel formulation (ANP Resolution No. 5/2012), and the production of fuels in petrochemical plants (ANP Ordinances No. 84/2001 and No. 317/2001).
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In total, 11 normative acts are being revoked (the five aforementioned regulations and six other accessory ones). According to the ANP, the resolution will come into effect on October 1, 2021.
See ANP Resolution No. 852/2021 in full in the Official Gazette HERE
Direct Sale of Ethanol from Mills Is Supported by Lawmakers Who Promise to Stimulate Competition and Curb the Increase in Gasoline Prices at Fuel Stations
Provisional Measure 1063/21, approved in August by the Government, went through a public hearing by the Mines and Energy Commission yesterday (09/21), which counted with the support of deputies. MP 1063/21 authorizes ethanol mills to sell fuel directly to gas stations, without going through distributors, as was previously required.
According to the executive director of the Brazilian Association of Independent and Free Fuel Resellers (Abrilivre), Rodrigo Zingales, the provisional measure will contribute to reducing fuel prices in Brazil.
Furthermore, Feplana projects a decrease in price and states that there will be no loss in quality. According to Alexande Andrade Lima, president of the Federation of Sugarcane Planters of Brazil (Feplana), the price of biofuel should be lower, especially in mills located in major urban centers.
According to Lima, “The expectation is that the price of ethanol will drop, especially in the industrial units that are close to the major consumer centers.” He also asserts that he guarantees the quality of the biofuel that will go from the mill directly to the gas stations.
“The sector is well monitored by the ANP. There is no chance of losing quality at the pumps, as there will be information about the mill that supplied the product, and this will ensure quality. The sector is very responsible when it comes to product provenance,” he points out.
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