On July 30, the National Energy Council of Brazil (CNPE) approved a resolution that would allow the sale of federally owned natural gas directly on the liberalized market through auctions. According to the government, this can reduce gas prices by more than 50% and increase the competitiveness of the industry.
The new measure updates the country's policy in the field of state—owned gas sales and allows the state-owned PPSA company to conduct short-term auctions for 2026-2030, as well as long-term auctions starting in 2030. Gas will be offered on an economically advantageous and competitive basis, while priority will be given to energy-intensive industries, including chemicals, petrochemicals, fertilizer production and steel production, the government said.
According to the Ministry of Mines and Energy, government gas prices may drop to about $5 per million BTU from the current about $12 per million BTU, which they currently pay for gas sold by state-controlled Petrobras, Minister Alexandre Silveira said.
The decree became part of Brazil's "Gas for Jobs" program aimed at increasing gas supplies to the domestic market and increasing competition in the country's gas sector. The government said that research by the state-owned energy company EPE shows that, together with the current regulatory measures of the ANP, this initiative can attract investments of 95 billion reais ($17 billion) and increase Brazil's GDP by 79 billion reais.
The authorities also expect that the new policy will reduce gas costs for generating electricity at thermal power plants and increase the volume of compressed natural gas transportation.
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