Caraguatatuba mayor seeks ANP rule reversal to prevent R$120 million royalty loss

Mayor Mateus Silva of Caraguatatuba met with the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) on Thursday to challenge recent rule changes affecting the Monteiro Lobato Natural Gas Treatment Unit (UTGCA). The new regulation suspends the previous rule that allowed commercialization of gas processed in Caraguatatuba with a minimum 80% methane content, a rule that was set to remain in force until December 2025.

The ANP‑mandated change forces Petrobras to comply with standards that reduce UTGCA’s output because the plant was designed for a different gas type. The mayor warns that the reduced production will cut municipal royalties by an estimated R$120 million by the end of the year, jeopardising public services, infrastructure projects and the city’s financial stability. He argues the rule lacks technical justification, noting that the earlier regulation had been recognised by ANP as boosting national gas supply and that the new criteria are not applied in international markets.