IBP highlights points of the Gas Decree that concern the industry

The Brazilian Institute of Petroleum and Natural Gas (IBP) highlighted the main points of concern of the industry in relation to the changes brought by Decree 12.153/2024, published in Official Gazette of the Union last week, known as the Gas Decree, which aims to increase the supply of the input in the country.

The entity was concerned about the possibility of reviewing Development Plans at the initiative of the National Agency for Petroleum, Natural Gas and Biofuels (ANP), including in fields that are already in production and/or whose infrastructure has already undergone a final investment decision.

There is also concern about the conversion of competitive, free-initiative activities, such as the construction of pipelines and processing plants, into activities regulated by the ANP, where the regulator will have the power to establish “fair remuneration” for existing assets, and the Energy Research Company (EPE) will be able to define when and where new drainage and processing infrastructures should be built;

Another point is the centralization in the EPE of all sector planning, no longer in an indicative manner, as had been done until now through the publication of informative reports, but now in a determinative manner, where it is required that all new infrastructure to meet the supply and demand of natural gas in the future must be identified by the public body and submitted to private interest through a public selection process, to be carried out by the ANP.

“The IBP reiterates its support for the Federal Government’s programs and initiatives that aim to guarantee a sustainable, reliable and affordable energy supply, which is essential for the country’s social and economic growth. However, it emphasizes that the development of the energy market must be based on a business environment with stable rules, guided by free competition and respect for current contracts,” the institute stated.

For the entity, the role of the ANP is fundamental in regulating the Gas Law, and to this end the IBP supports the financial and human capacity of the agency, “so that it can fulfill its duties with independence and excellence and contribute effectively to ensuring transparency, non-discrimination and competitiveness in the Brazilian natural gas industry”, it concluded, making itself available to the government to deepen the debate.