The Brazilian national energy policy council (CNPE) published a resolution that formally creates the Gas for Jobs program, aimed at developing a wide range of measures to support domestic natural gas production and use.
The guidelines published today define the programs a group of government agencies will pursue, including generating domestic gas for use in Brazil's fertilizers, petrochemicals "and other productive sectors" to reduce the need for imports; reducing natural gas reinjections to improve social and economic benefits; and integrating gas with the national energy transition strategies to better match the goals of biogas, biomethane, hydrogen, industrial cogeneration and carbon capture.
The focus on the fertilizer and petchem industries is a source of concern for some industrial gas consumers, who tell Argus they fear gas prices will be subsidized for those sectors.
The program also includes allowing state oil and gas marketing company PPSA to use swaps contracts to promote gas production and use, and for PPSA to develop a long-term gas pricing policy. PPSA can also drive investments in gas infrastructure, as well as analyze other actions to stimulate pipeline and processing investments.
The Gas for Jobs program has representatives from 13 governmental entities, including the president's office, the ministry of mines and energy, the ministries of agriculture, science, ports and airports, environment and climate change; Brazil's Bndes development bank, oil and gas regulator ANP, the energy research bureau and PPSA.
The publishing of the guidelines for the Gas for Jobs working group have been expected by the Brazilian gas sector since 17 March, following its announcement after a CNPE and ministry of mines and energy meeting.
