CNPE Approves “Monopoly Break” and Petrobras Will Have to Sell Shares of Gas Transportation and Distribution Companies

The Government’s Expectation Is That The Measures Will Impact The Price Of Cooking Gas, For The Industry And Also The Gas Used In The Production Of Electricity — Since There Are Thermal Power Plants That Use Natural Gas As Fuel.

The National Energy Policy Council (CNPE) Approved, On This Monday, June 24, Measures To Reduce Gas Prices. The Project Aims To Improve Efficiency In The Sector And Implement What The Minister Of Economy, Paulo Guedes, Has Called A “Shock Of Cheap Energy.” The Actions Include The Sale Of State Gas Distributors, The End Of Petrobras’ Monopoly In The Sector, And New Regulatory Rules Through The National Agency Of Petroleum (ANP).

Among Other Measures, The Resolution Includes The Following Recommendations: Actions For Petrobras To Stop Controlling The Sale Of Natural Gas And The Adoption Of Incentives For States To Give Up The Distribution Monopoly.

Recomendado para você

Oil and Gas

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

1

According To The Deputy Executive Secretary Of The Ministry Of Mines And Energy, Bruno Eustáquio, The Council Cannot Make Determinations To Petrobras, But The Actions Outlined In The Resolution Can Be Realized Through A Commitment Term To Be Signed By The State Company And The Administrative Council For Economic Defense (Cade).

Under The Agreement, Petrobras Must Commit To Selling Natural Gas Distributors And Transporters And Give Up The Exclusivity Of Using The Pipeline Capacity.

According To The Minister Of Mines And Energy, Bento Albuquerque, The Measures Could Result In A Reduction Of About 40% In Gas Prices Within Two To Three Years.

The Resolution Approved This Monday Recommends That The Union Adopt Incentives For States To Voluntarily Give Up The Right To The Monopoly Of Natural Gas Distribution. The Opening Of The Gas Market Could Be Used, For Example, As Counterpart In The Fiscal Balance Plans Of The States When There Are Loans With Union Guarantees.

According To The Minister Of Economy, Paulo Guedes, Many States Have Already Stated That They Intend To Give Up The Monopoly. “It Is Better For The State To Have Natural Gas Than To Have The Monopoly,” He Stated. By Giving Up The Distribution Monopoly, The State Will Allow An Industry To Purchase Gas Directly From The Producer, Making Long-Term Contracts, Which Can Lower The Price.

The Government Says That With The Opening Of The Market, The Price Of Natural Gas Could Fall, And Consequently, The Price Of Electricity. This Is Because Some Thermal Power Plants Use The Fuel To Generate Electricity.

“The ‘New Gas Market’ Aims To Promote Free Competition In The Gas Market Of Brazil. It Seeks To Reduce The Price Of Energy, Allow The Reindustrialization Of The Country, And Sustainable Development,” Said The Minister Of Mines And Energy, Bento Albuquerque.

According To The Ministry, Over 80% Of Natural Gas Is Consumed By The Industry And Thermal Power Plants. In March Of This Year, For Example, Residential Consumers Accounted For 1% Of The Demand, And Cars, 9%.

Docas Do Rio Is On The Radar Of The Government’s Privatization Program