Chamber Approves New Regulatory Framework for the Gas Sector

On Wednesday, March 17, the Chamber of Deputies approved Bill No. 4,476/2020, known as the New Gas Law, which establishes a new regulatory framework for the sector. The bill aims to decentralize the market and generate millions of jobs in the coming years. Since the Senate's amendments were rejected, the proposal will now proceed to presidential sanction.

One of the most impactful provisions of the bill is the prohibition of vertical integration, which prevents a single company from operating across all stages of the supply chain—from extraction to distribution. Currently, for example, Petrobras holds 100% of gas importation and processing, and around 80% of production (mainly petroleum gas). The bill ensures that companies in the sector will have contractual access to liquefied natural gas (LNG) terminals, gas pipelines used for transporting production, and gas treatment or processing facilities.

The new framework also establishes that private companies must operate natural gas transportation infrastructure under an authorization regime, replacing the current concession model for the construction of new transportation pipelines. In cases where more than one company is interested in building a pipeline, the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) must carry out a public selection process.

These authorizations will have no defined term of validity and may only be revoked under specific conditions: at the company's request, in case of bankruptcy, serious non-compliance with obligations, pipeline deactivation, or if the company interferes with or is influenced by other players in the gas industry.

Other important points include provisions that require the ANP to define the maximum revenue a transporter may earn from its services only after public consultation, as well as to establish tariff adjustment and review criteria. The approved text also prohibits controlling shareholders of companies involved in the exploration, development, production, importation, and commercialization of natural gas from accessing sensitive competitive information held by transporters.

These shareholders are also barred from appointing directors or board members of transport companies, or executives in the commercial or supply divisions of piped gas distribution companies.

Finally, the bill stipulates a transition period of up to three years for existing companies to comply with the new requirements.

Fonte: Agência Câmara de Notícias