Gas Law, Enacted by the Federal Government Last April, Advances to Encourage Competition and Reduce Final Product Price

Written by Valdemar Medeiros

Published on 31/01/2022 at 13:28

Updated on 31/01/2022 at 15:05

Gás natural no Brasil – Foto: Banco de imagem

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New Natural Gas Market and Application of the Gas Law Will Bring Benefits to Industry and Consumers

The Federal Government launched, in Porto Velho/RO, the program to open the newest gas market in Rondônia. Since last year, it has been possible to modernize the natural gas market in Brazil, due to initiatives such as the new Gas Law program and the presidential sanction of the Natural Gas Legal Framework.

Learn About the Gas Law

The Gas Law, signed in April 2021 by the President of the Republic, Jair Bolsonaro, was the starting point for the creation of a new market, with new rules imposed for the exploration of activities related to transportation, treatment, processing, underground storage, conditioning, liquefaction, regasification, and commercialization of natural gas.

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The Federal Government also aims for a more efficient use of the existing infrastructures on exploration platforms. According to the Government of the State of Rondônia, some companies have already expressed interest in exploring natural gas in the state, with significant investments.

Gas Law and the Opening of the Natural Gas Market Will Bring Benefits to Industry and Consumers

With the opening of the natural gas market in Rondônia, the exploration of gas in the Solimões and Amazon River basins, in the Amazon region, has potential. According to Eneva, natural gas production began in 2021 in the Azulão field, the first area being explored.

According to the Ministry of Mines and Energy, this measure will bring several benefits not only to the local industry but also to consumers, who will be able to use natural gas to fuel vehicles, residences, or businesses.

According to the MME, as production grows, there will also be a reduction in the price of cooking gas. Bento Albuquerque, Minister of Mines and Energy, reported that there is a correlation between attracting businesses and generating jobs and income, due to the opening of the new natural gas market. He states that the product has various applications in both electricity generation and industry, as well as in the transportation sector and service provision.

Other States Will Benefit from the Opening of the Natural Gas Market and the Gas Law

Another initiative from the Federal Government that contributed to the opening of the gas sector in the country was the New Gas Market program, launched in 2019, also by Bolsonaro, where measures aimed at all segments of the natural gas value chain are analyzed and imposed, from the flow of production to its distribution, always respecting the specific jurisdiction of the states, allowing each to regulate local gas services through pipelines. In addition to Rondônia, some other states are updating their legislation to accommodate the New Gas Market project, and states such as Maranhão, Paraíba, Pernambuco, Piauí, and Ceará have already complied with the requirements.

Gas Law, Enacted by the Federal Government Last April, Advances to Encourage Competition and Reduce Final Product Price

New Natural Gas Market and Application of the Gas Law Will Bring Benefits to Industry and Consumers

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