Brazil's mines and energy ministry (MME) has launched a public consultation on its plans for improving transportation and process infrastructure access for natural gas and biomethane (PNIIGB), a plan that aims to increase gas supply and reduce prices.
The plan addresses LNG regasification terminals, natural gas transmission pipelines, natural gas compression stations, natural gas delivery points — also known as city-gates — and expanding and improving access to existing local piped gas service pipelines.
Access to infrastructure directly impacts state-controlled Petrobras, which owns and controls much of the affected pipelines and installations. Petrobras had to reduce its share of the market starting in 2019, as it agreed with antitrust watchdog Cade to sell its stakes in transportation pipeline companies. The PNIIGB aims to push the decentralization of the Brazilian gas market from Petrobras a step further, as it will create rules and tariffs for any gas producer to access these pipelines and processing facilities by mapping the industry's potential demand.
"The infrastructure has to be regulated with a centralized and well-defined plan," said MME secretary for oil, natural gas and biofuels Pietro Mendes. "All that [the government] has done is so that the infrastructure is not an entry barrier for new market participants and to improve the competition between natural gas suppliers."
Market participants can submit public comments on the PNIIGB methodology until 18 April. The government expects to have the plan published by the end of the year.
The MME is also proposing implementing a gas-release program, which requires the company with the dominant market position — in this case, state-controlled Petrobras — to hold compulsory auctions to sell a share of its gas to other market participants.
Since the 2021 gas law, Brazil's natural gas market has faced a complex evolution, especially within the industrial sector. Historically reliant on Petrobras, the industry has grappled with supply constraints and high prices, which have hindered competitiveness and growth. Although the new regulatory framework aimed to encourage greater market participation and diversify supply sources, challenges remain. As of this month, many industrial users still report difficulties in securing stable and affordable gas supplies, curtailing production. Brazil as of October had approximately 190mn m³/d of available gas supply, including 160mn m³/d from domestic production and 34mn m³/d imported by pipeline or as LNG, according to MME. Industrial consumption amounts to 39.2mn m³/d.
