Brazilian industry entities advocate for gas market reforms and energy security

Industry entities in Brazil are advocating for structural changes to the natural gas market and its role in energy security. Representatives from Abegás and Abrace Energia have emphasized the importance of the ‘Gas Release’ program to increase market competition and lower prices. Marcelo Mendonça, executive director of Abegás, noted that the Brazilian market faces cultural and structural barriers to gas access compared to more mature markets like the United States. He argued that increasing the number of suppliers and improving access to essential transport and processing infrastructure is vital for the entire supply chain.

Additionally, Abegás is pushing for the inclusion of natural gas in the Redata regulation (Special Tax Regime for Data Center Services). The association argues that natural gas should be viewed as a complementary source to renewables rather than a competitor, providing the continuous energy supply necessary for data center operations. By utilizing gas generation closer to consumption centers, particularly in the South and Southeast, the industry suggests that the country can reduce the need for massive investments in new transmission lines and avoid passing those costs on to other electricity consumers.