Brazil New Gas Law Policy Brief

7 BRAZIL ’ S NEW GAS LAW

INSTITUTE OF THE AMERICAS POLICY BRIEF

About the Institute of the Americas E stablished in 1981, the Institute of the Americas is an independent, inter-American institution devoted to encouraging economic and social reform in the Americas, enhancing private sector collaboration and communication and strengthening political and economic relations between Latin America, the Caribbean, the United States and Canada. Since 1992, the Institute’s Energy & Sustainability program has played a crucial thought-leadership role in shaping policy discourse and informing policymakers and investors on the most important

The next steps regarding the implementation of the law is the publication of the decree that will regulate it, harmonization of the state regulations for the commercialization of natural gas. Brazilian states have autonomy to legislate on the topic and the rules are often different. From a regulatory point of view, it is important to consider that ANP will play a more active role in the gas sector. It is also important to stress that the success of the new gas law hinges on the conclusion of the agreement between Petrobras and CADE related to the divestment of assets, and the regulation on access to essential infrastructures. Overall, the challenges can be intimidating, but the positive prospects should outweigh the worries. The Gas Law is a necessary step forward, the natural gas segment has the opportunity to establish itself as an independent sector as seen in other parts of the world, and the country should benefit from it.

trends in the energy sector. About the Author

Nelson Narciso is President of NNF Energy Consultancy, Non Resident Fellow of Institute of the Americas and Former Director of The National Petroleum Agency (ANP) the Brazilian Oil and Gas regulator agency.

April, 2021