Brasilia, Brazil / 08.04.2021 23:20:40
The government from Brazil gave the green light to a bill that establishes a new regulatory framework for the gas sector that will allow a greater participation of the private initiative.
President Jair Bolsonaro did not impose a veto on the text approved by Congress on March 17, according to the General Secretariat of the Presidency.
The initiative foresees, among other aspects, the deconcentration of the Brazilian gas market, by preventing the same company from being able to act in all phases of exploitation of the resource, from production to distribution.
The aim is to increase competition in the sector, which today is practically monopolized by Petrobras.
The Brazilian state oil company owns 100 percent of the import and processing chain and is responsible for about 80 percent of production. This after having sold its shares in the transportation and distribution segments.
The text also states that National Petroleum Agency (ANP) must follow the evolution of the natural gas market to stimulate competition and reduce concentration in it.
The brazilian government, from projections of the Energy research company (EPE), foresees that the new regulatory framework will generate investments of between 50 thousand and 60 billion reais, equivalent to 9 thousand and 11 billion dollars. and triple natural gas production by 2030.
He also noted that the initiative has the potential to create four million jobs in the next five years and contribute 0.5 percent of the growth of the Gross Domestic Product (GDP) in the next ten years.
Brazil produced in 2020 a daily average of 3.74 million barrels of oil Y equivalent gas, a record volume and 5.22 percent higher than in 2019, according to data from the National Petroleum Agency.
The natural gas production, for its part, it rose from 770 thousand barrels equivalent per day in 2019 to 800 thousand barrels per day in 2020, 4 percent more.
DMZ
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