Brazilian Senate Backs Gas Reform Bill
Brazil's senate approved on December 10 the basic text of a bill that will further liberalise the country's gas network, increasing competition and eliminating red tape.
The bill was approved by Brazil's lower house of parliament in September and proposes to change the legal framework for gas distribution from a regime of concessions to a simpler authorisation process to reduce the bureaucracy involved in building pipelines. It also prevents producers, namely state-owned Petrobras, from owning distribution assets.
Before it can be sent to president Jair Bolsonaro for signature, the draft law will have to go back to the lower house as the senate made several amendments. These amendments permit biomethane to be supplied into the pipeline network, enable gas processing units to be built in gas-producing municipalities and allow for gas to be transported via public-private partnerships.
Brazil has already taken several steps to liberalise its gas industry and end the de-facto monopoly of Petrobras over the sector, including allowing other gas producers to use the national company's processing capacity.
Petrobras is also on a major divestment programme, seeking buyers for various upstream, midstream and downstream assets. On December 14, it announced the launch of the non-binding phase of a contest for 50% interests in its Marlim, Voador, East Marlim and South Marlim concessions in the offshore Campos basin. The fields produced a combined 214,300 barrels of oil and 3.59mn m3 of gas/day in January through November.