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Home With a view to opening the natural gas market, the government demonstrates support for the CNPE resolution

With a view to opening the natural gas market, the government demonstrates support for the CNPE resolution

5 May 2022 to 08: 10
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gas, market, government
Photo: Reproduction by Photocreo Bednarek / Source: Adobe Stock

With the decision, the government aims to improve energy policies and carry out the development of the Novo Mercado do Gás program

A resolution by the CNPE (National Council for Energy Policy), containing guidelines for opening up the natural gas market, was approved by the Federal Government. The government's intention with the measure is to improve energy policies, in order to allow free competition, and also to carry out actions for the market transition period, fostered by the development of the Novo Mercado de Gás project.

In this context, the Novo Mercado de Gás consists of a Federal Government program coordinated by the Ministry of Mines and Energy, which intends to develop a more open, dynamic and competitive natural gas market, in addition to providing conditions to reduce its price and, in this way, help Brazil's economic growth.

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

The General Secretariat of the presidency also associated the measures with the actions of the CMGN

As stated by the General Secretariat of the Presidency of the Republic, the measures come from the work of the CMGN (Committee for Monitoring the Opening of the Natural Gas Market) – the government body responsible for assisting and monitoring the implementation of the project.

The secretariat also stated that improvements related to the market transition period were proposed, such as new conduct and deliberations related to transparency and organization among industry agents for the establishment of the market model provided for by law.

In addition, this government institution also highlighted that actions are proposed to develop the new natural gas market, mainly in view of the adequacy of the procedures and standards followed by agents of the gas industry, considering the new normative scenario, in order to guide this sector of conducive to national economic growth.

Some of the conducts listed in the CNPE resolution include integration between the natural gas and electricity and encouraging competition

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

  • exclusion of economic and regulatory barriers imposed on natural gas exploration and production activities;
  • encouraging the development of secondary and short-term, molecule and capacity markets;
  • promotion of exploratory block auctions on a regular basis;
  • implementation of measures to encourage competition, which reduce market concentration and also enable competition in the supply of natural gas;
  • boost to the commercial and operational independence of carriers;
  • reinforcement of the division between potentially competitive activities;
  • development of an independent and integrated management model for the natural gas transport system;
  • increased transparency with regard to pricing and the characteristics, capabilities and use of infrastructure accessible to third parties;
  • installation of input and output model to reserve capacity for Services;
  • encouraging the reduction of transaction costs in the natural gas chain and increasing liquidity in the market;
  • adoption of a granting model for the activities of transport and underground storage of natural gas in line with the dynamics of the industry;
  • boost to the development of natural gas storage facilities;
  • enabling individuals to have non-discriminatory and transparent access to gas pipelines;
  • improvement of indicative infrastructure plans;
  • improvement of the tax structure of the natural gas sector in the country;
  • promoting consistency between state and federal regulations;
  • usufruct of the Union's natural gas, on economic bases, bearing in mind the priority of supplying the national market;
  • effecting the association between the natural gas and electricity sectors;
  • safe transition to the new natural gas market model.

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