Brazil's national energy council CNPE approved a resolution on 30 July that will allow federally owned natural gas to be sold directly to the liberalized market through auctions, a move the government said could cut gas prices by more than 50pc and boost industrial competitiveness.
The measure updates Brazil's policy for marketing state-owned gas and authorizes state-owned commodity trading firm PPSA to hold short-term auctions for 2026-30 and long-term auctions from 2030. The gas will be offered on an economic and competitive basis, with priority given to gas-intensive industries such as chemicals, petrochemicals, fertilizers and steelmaking, the government said.
The mines and energy ministry estimates that state-owned gas prices could fall to about $5/mmBtu from around $12/mmBtu currently paid for gas commercialized by state-controlled Petrobras, according to minister Alexandre Silveira.
The resolution is part of Brazil's gas-for-jobs program, which aims to increase domestic gas supply and improve competition in Brazil's gas market. The government said studies by state-owned energy research firm Epe indicate that the measure, together with ongoing regulatory actions by hydrocarbons regulator ANP, could generate R95bn ($17bn) in investments and add R79bn to Brazil's GDP.
The government also expects the policy to lower gas costs for thermoelectric generation and compressed natural gas transportation.
