Natural Gas Project Set to Move Forward in Rondônia with Adjustment to the New Gas Law

Written by Valdemar Medeiros

Published on 04/10/2020 at 11:24

Nova lei do gás natural

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With The New Gas Law, Many Projects May Finally Come To Life And Benefit The State

After 20 years of attempts to expand the natural gas market in Rondônia, the fuel may finally reach local homes and industries if the New Gas Law, a proposal currently in the National Congress since 2013, is approved. This is because one of the main points of the new regulatory framework is the expansion of the gas pipeline network, which is currently concentrated mainly in the Central-West, Southeast, and South regions.

The Solution To A Historical Natural Gas Problem

The solution to the historical problem only began to gain momentum last year, with the entry of private resources. Unable to bear the necessary investments, representatives of Petrobras and the state government agreed to relinquish the service to prioritize the long-desired arrival of natural gas.

As a result, the state-owned company, which currently holds the monopoly on distribution service in Rondônia and the rest of the country, paves the way for commercial exploration by other companies.

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“The current market is extremely closed and cartelized, with virtually 100% control by Petrobras and other state-owned companies. There are no investments, for example, to expand the gas pipeline network in Brazil. With the new law, we will provide legal security for the private sector to participate actively, build pipelines, and, more than that, the possibility of taking these pipelines to various parts of the country, generating new investments,” argues Federal Deputy Domingos Sávio (PSDB-MG), one of the authors of PL 6407/2013.

The New Gas Law

The bill seeks to facilitate the entry of companies through changes in the contracting process, requires the sharing of existing structures with third parties for a fee, authorizes large consumers to construct their own pipelines, and makes it difficult for the same agents to act at different stages of the production process.

The text was approved in the Chamber last Tuesday (September 1st), by 351 votes to 101. It was approved without changes compared to the version validated in 2019 by the House’s Mines and Energy Committee.

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With The New Gas Law, Many Projects May Finally Come To Life And Benefit The State

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