09/01/2024 – 21:55
After evaluating for four days the publication of the decree aimed at increasing the supply of natural gas in the country, the Brazilian Institute of Petroleum and Natural Gas (IBP), in consensus with its associates, warned that the new rules bring significant changes, “including possible innovations and contradictions in relation to the Gas Law”, it assessed.
Approved in 2021, the Gas Law “created an environment of legal and regulatory stability that encouraged new investments and the entry of new agents along the chain, driving greater competition in the natural gas market”, highlighted the IBP.
The recently published Decree No. 12,153/2024 “has the potential to generate legal uncertainty and increase the perception of risk, in an industry characterized by large long-term investments and a broad and complex chain”, explained the IBP, recalling that companies in the sector need to deal with geological risks, tax complexity, volatility in molecule prices, as well as uncertainties related to future demand.
“Possible legal and regulatory questions, in addition to the time required to implement some provisions of the Decree, could impact the schedule of projects already approved and delay investment decisions throughout the gas chain, without, however, guaranteeing immediate or short-term tangible effects, whether in terms of increasing supply or even reducing prices for consumers,” the entity stated.
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