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The Largest Event in the Sector in the Country, Promoted by the Brazilian Association of Regulatory Agencies (ABAR), Will Take Place from November 10 to 12 in Foz do Iguaçu (PR), Addressing Issues Such as the New Gas Law and New Markets for the Sector and the Use of Biogas
For the first time since the beginning of the pandemic, regulatory agencies and state secretariats from across the country, along with representatives from CADE and the British Energy Program for Brazil (BEP), will debate in person the impact of new legislation and changes in the oil and gas market in Brazil. The stage for the meeting will be the XII Brazilian Congress on Regulation and 6th Expo ABAR, promoted by ABAR (Brazilian Association of Regulatory Agencies) and considered the most important meeting in the regulatory sector in the country. The event is expected to gather about 1,000 people in Foz do Iguaçu (PR) from November 10 to 12, following strict health safety and distancing protocols.
Other Interesting News
One of the most sensitive topics in this sector is the New Gas Law (Law 13,134/2021), sanctioned in April this year by President Jair Bolsonaro, which proposes a revision of the regulatory framework established by the Federal Constitution of 1988. In the states, there is concern that the new law may exceed the exclusive constitutional authority of these entities (Art.25, §2º, CRFB/1988) to regulate, supervise and control the “local gas pipeline services,” which also includes Biogas.
For members of state Secretariats and Regulatory Agencies, the new legislation poses potential risks of legal, operational, and regulatory uncertainty, which could bring economic and financial imbalance to concession contracts, especially in large supply contracts, if it does not respect constitutional provisions. “The main discussion is regarding the authority to regulate trade and define pipelines, which according to the law pass under the control of the national regulatory agency rather than the states. The measure was inspired by European experiences, but Brazil is a continental country with very different characteristics. For 32 years, the states have been monitoring trade with local consumers through public companies. Gas is very different from electricity,” compares Paula Campos, director of the Technical Chamber of Oil and Gas at ABAR.
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In the last twenty years, gas has been an energy alternative for sectors such as industry and power generation, but the evolution of the infrastructure in Brazil is unequal: while the gas transportation pipeline infrastructure expanded from 4,000 km to 9,500 km since 1999, distribution pipelines grew tenfold during the same period—from 3,800 km in 1999 to 38,200 km in 2020.
Another highlighted theme in the event will be the opening of the natural gas market and what has progressed since Petrobras signed an Anticompetitive Conduct Term (TCC) with the Administrative Council for Economic Defense (CADE) in June 2019. With this, Petrobras sold its stake in this sector to private companies.
“If well implemented, it will be a revolution for the market, as there will be changes in most states and an increase in the potential for competition in the product offer. In addition to possibilities of contesting the monopoly in all spheres, including transportation,” comments Tiago de Ávila Acquaviva, executive secretary of the Chamber of Oil and Gas at ABAR. At the ABAR Congress, several states (such as Rio de Janeiro, São Paulo, and Espírito Santo, among others) will share their experiences in renewing contracts already under the terms of the agreement.
Biogas, the “Caipira Pre-Salt”
In addition to regulatory and infrastructure issues, the Congress will have a special panel featuring case presentations on the use of biogas, a renewable energy source that is beginning to be used in Brazil and reduces production costs while simultaneously minimizing the negative impacts of waste on the environment. In the interior of São Paulo, biogas is referred to as “Caipira Pre-Salt,” given the enormous production potential of biogas that can be generated as a byproduct of sugarcane mills. Biogas can also be produced from solid waste from animals, such as pigs.
In partnership with the British government’s program, ABAR is training representatives of all affiliated regulatory agencies, focusing on a regulatory guide for biogas. In the northwestern region of São Paulo, biogas is being utilized as an energy source in a sustainable cities project. “It’s a sustainable source, generated from an ethanol plant, and is independent of fluctuations in the dollar and oil. We hope to present this project to other Brazilian states,” comments Paula Campos.
Complete Program of the XII Congress on Regulation
Over the course of three days, the meeting will have an extensive agenda that includes technical paper presentations in the morning and panels, round tables, and thematic debates in the afternoon, covering segments such as: oil and gas, transportation and logistics, energy, basic sanitation, water resources, health, legal and institutional aspects, governance, and social control. In parallel, the 6th edition of Expo ABAR will also take place, a space intended for the institutional exhibition of event participants, aimed at experience sharing and the development of new projects.
Additionally, the ABAR Congress will host two important international events in parallel: FIAR (Ibero-American Forum on Regulation), promoted by Aderasa (Association of Regulatory Entities for Drinking Water and Sanitation in the Americas) on the 9th and 10th; and Ersan (Meeting of the Regulatory Entities for Basic Sanitation and Water Resources of Ibero-American Countries and the Community of Portuguese Language), promoted by a group of organizations, including Ersara (Regulatory Entity for Water and Waste Services of the Azores), on the 11th.
The XII Brazilian Congress on Regulation has institutional support from institutions such as Aesbe (Brazilian Association of State Sanitation Companies), CREA-PR (Regional Council of Engineering and Agronomy of Paraná), Corecon-PR (Regional Council of Economics of Paraná), IEP (Institute of Engineering of Paraná), and Assemae (National Association of Municipal Sanitation Services), among others. Registrations for the event can be made through the website https://congressoabar.com.br/.
Service
- WHAT: XII Brazilian Congress on Regulation and 6th Expo ABAR – “The Role of Regulation and the Sustainable Development of Brazil”
- WHEN: November 10, 11, and 12, 2021
- LOCATION: Rafain Palace Hotel & Convention Center, Foz do Iguaçu/PR
- REGISTRATION: https://congressoabar.com.br/
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