Natural gas sector associations see risk to market opening

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Ten associations representing the natural gas sector released last Tuesday (18), a joint position pointing out that recently approved state laws would be hindering the opening of the natural gas market in the country.

The document asks states to expand discussions on regulation to avoid conflicts with federal laws.

According to the entities, in the last months of 2021, several States drafted bills on the provision of piped gas service and the free market, with the aim of updating their regulatory frameworks in line with the new federal legal framework – established by the Nova Gas Law, passed last year.

Paraíba, Maranhão, Pernambuco, Piauí and Ceará already have their laws approved, while in Rio Grande do Norte the proposed law is in the final stages of processing.

Among the points in conflict with federal regulations, the document says that state laws intend, for example, to assign local regulatory agencies to classify new pipelines and reclassify existing ones.

Some states would also be imposing the need for authorization for traders, with the opening of branches in the states, requirements in free contracts and creation of new fees and charges for the sale of gas in the free market.

The document is signed by, among others, the Brazilian Oil and Gas Institute (IBP), the Association of Large Industrial Energy Consumers and Free Consumers (Abrace) and the Association of Natural Gas Transport Companies by Gas Pipeline (Atgás).

Reference: CNN Brasil

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