A New Life for Natural Gas in Brazil

Approaching his eighth month in office Jair Bolsonaro is en route to delivering a major overhaul to Brazil’s energy sector. The government’s National Council for Energy Policy (CNPE) recently approved new guidelines to liberalize the domestic natural gas market. The rules come shortly after state energy giant Petrobras announced it would divest key gas assets following negotiations with its principal shareholder the federal government. Behind the technicalities and legal complexities of an energy liberalization, bigger picture, the fundamentals of a competitive gas market are in place for the first time in Brazil. Among them, Petrobras will sell controlling stakes in its many businesses that import, transport, and distribute gas. Accompanying regulations under the government’s so-called “New Gas Market” program will […]