Brazil debates bill to increase natural gas market competition

Two Brazilian House committees have debated Bill 5802/25, proposed by Deputy Kim Kataguiri, which aims to reduce market concentration in the natural gas sector through a mechanism known as “gas release.” This regulatory measure would require a dominant market agent to offer a portion of its gas in compulsory auctions to increase competition.

Proponents of the bill argue that the current market is heavily dominated by Petrobras, which drives up costs across various productive chains. Paulo Pedrosa, president of Abrace, noted that recent auctions conducted by PPSA demonstrated significant price reductions, with gas previously priced between 9 and 11 dollars being sold for 6 dollars. He stated that these lower prices help boost industrial production, stimulate the economy, and generate employment.

Industry representatives, including Fernanda Fiorentini Costa of Abividro, emphasized that natural gas is an essential input for sectors such as glass manufacturing, which supports the construction, automotive, and pharmaceutical industries. Artur Watt, director-general of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), highlighted the agency's ongoing efforts to regulate the Gas Law and stimulate efficiency, noting that a public hearing is scheduled for November 19.