Aiming to Open the Natural Gas Market, Government Shows Support for CNPE Resolution

Written by Roberta Souza

Published on 05/05/2022 at 08:10

Foto: Reprodução de Photocreo Bednarek / Fonte: Adobe Stock

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With The Decision, The Government Aims To Improve Energy Policies And Implement The Development Of The New Natural Gas Market Program

Resolution of CNPE (National Council on Energy Policy), containing guidelines for the opening of the natural gas market, was approved by the Federal Government. The government’s intention with the measure is to enhance energy policies in order to enable free competition, as well as to implement actions for the transition period of the market, driven by the development of the New Natural Gas Market project.

In this context, the New Natural Gas Market consists of a program of the Federal Government coordinated by the Ministry of Mines and Energy, which aims to develop a more open, dynamic, and competitive natural gas market, as well as provide conditions for lowering its price and thus assist in Brazil’s economic growth.

The resolution in question was published in the edition of this Tuesday (03) of the Official Gazette of the Union (DOU) and is signed by the Minister of Mines and Energy, Bento Albuquerque.

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The General Secretariat of the Presidency Also Associated The Measures With The Actions Of CMGN

According to the statement from the General Secretariat of the Presidency of the Republic, the measures stem from the work of CMGN (Monitoring Committee for the Opening of the Natural Gas Market) – a government body responsible for assisting and monitoring the implementation of the project.

The Secretariat also stated that improvements related to the market transition period have been proposed, such as new guidelines and deliberations regarding transparency and organization among industry players for establishing the market model provided in the law.

Additionally, this government institution also highlighted that actions are proposed to develop the new natural gas market, mainly regarding the adjustment of procedures and standards followed by industry players considering the new regulatory scenario, aiming to guide this sector in a way favorable to national economic growth.

Some Of The Guidelines Listed In The CNPE Resolution Include The Integration Between The Natural Gas And Electricity Sectors And The Stimulus To Competition

Thus, the guidelines present in the resolution approved by the government for the development of the new natural gas market include:

exclusion of economic and regulatory barriers imposed on natural gas exploration and production activities;
incentive to the development of the secondary and short-term markets, molecular and capacity;
promotion of regular auctions for exploratory blocks;
implementation of measures to incentivize competition, reducing market concentration and also enabling competition in the offer of natural gas;
boost to the commercial and operational independence of transporters;
reinforcement of the division between potentially competitive activities;
development of an independent and integrated management model for the natural gas transportation system;
increased transparency regarding price formation and the characteristics, capacities, and use of infrastructure accessible to third parties;
installation of the entry and exit model for capacity reservation for transport;

stimulus to the reduction of transaction costs in the natural gas chain and to the increase of liquidity in the market;

adherence to a granting model for transportation and underground storage activities of natural gas that aligns with industry dynamics;

encouragement of the development of natural gas storage facilities;

feasibility of non-discriminatory and transparent access for individuals to transportation pipelines;

enhancement of indicative infrastructure plans;

improvement of the tax structure of the natural gas sector in the country;

promotion of harmony between state and federal regulations;

usufruct of the Union’s natural gas, on economic bases, considering the priority of supplying the national market;

implementation of the association between the natural gas and electricity sectors;

safe transition to the new natural gas market model.

Aiming to Open the Natural Gas Market, Government Shows Support for CNPE Resolution

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Aiming to Open the Natural Gas Market, Government Shows Support for CNPE Resolution

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