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New gas law will end sector’s excessive State intervention



A new model for the production, transport and commercialization of natural gas is already being under discussion in the Congress. Deputy Marcus Vicente, the bill’s rapporteur, presented recently a substitute to PL 6.407, proposing new measures to the gas sector.

The bill will revoke the Gas Law passed by former President Lula in 2009, having a more interventionist profile and consolidating Petrobras’ monopoly on the sector. The new guidelines establish the opening of the market to new companies and create the  ‘gas-free consumer’,  who could choose from the various suppliers that would integrate the area, now dominated by Petrobras.

Government withdrew from editing Provisional Measure

It was initially expected that the government would issued a provisional measure with the new rules, as planned for the new electric model, still under study in the Ministry of Mines and Energy. But the government preferred instead to use a bill already being examined by Congress.

Despite anticipating the opening of the sector and having the objective of attracting more investment, the new gas regulatory framework is not a consensus among the several agents. According to the director of the CBI (Brazilian Center for Infrastructure), Adriano Pires, the proposal is controversial since today states regulate gas distribution part, being many state governments  partners of Petrobras in the companies that provide that service .