On July 30, Brazil's National Energy Council 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 could reduce gas prices by more than 50% and increase industry competitiveness.
The new measure updates the country's policy in the field of state-owned gas sales. It allows the state—owned PPSA company to conduct short-term auctions for 2026-2030 and long-term auctions starting in 2030. It is planned to offer gas on a competitive and economically profitable basis, while priority will be given to energy-intensive industries, including chemicals, petrochemicals, fertilizer production and the steel industry, the government said.
According to the Ministry of Mining and Energy, the state price of gas may decrease to about $ 5 per million BTU from the current about $ 12 per million BTU, which pays for gas sold by Petrobras, which is under state control, said Minister Alexandre Silveira.
The decision was 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 measures of the ANP regulator, this initiative can attract 95 billion reais of investment and add 79 billion reais to Brazil's GDP.
The authorities also expect that the new policy will reduce gas costs for thermal generation and increase electricity generation in Brazil. The Abrace Association of Large Energy Consumers supported the rules, saying they would create a more competitive environment and help lower gas prices for the industry. Abrace also noted ANP's other steps, in particular, expanding access to key gas infrastructure facilities that contribute to the development of the country's open gas market.
