Energy specialist, Adriano Pires states that amendments to the power sector rearrangement MP that benefit LNG need to dose subsidies
The incentives proposed by congressmen through parliamentary amendments in the provisional measure 1,304/2025, published by the government on July 11, are important to “Put the natural gas sector to work”but should not be viewed as lifetime subsidies so that there is no distortion of purpose, according to the founding partner of the (Brazilian Center for Infrastructure), consultancy in the energy sector, and writer of the Poder360, .
“The problem of Brazil is that we give a push and then need to push forever. Then it becomes subsidy. The subsidy, in certain situations, is necessary. But when you give a subsidy in Brazil for a particular sector, that subsidy is forever,” Said in an interview with this digital newspaper.
He states that the support proposed by congressmen will be important to accelerate the Brazilian natural gas sector in this “1st moment”but that the tendency is that, without correct dosage, the sector no longer wants “Give up” Two incentives.
“Sometimes you give a certain privilege, which is for you to accelerate the growth of that market, then the guy wants the privilege forever. And it doesn’t open anymore. ”
Custom
The MP regulates the commercialization of the Union’s natural gas, allowing PPSA (Petroleum PPSA S/A) to directly sell the input at more competitive prices, contributing to the reduction of costs for consumers and national reindustrialization.
The measure received 435 amendments and, among other measures, allocated part of the auctioned gas for use as vehicle fuel, especially in trucks, with the objective of reducing diesel consumption and encouraging transport decarbonization, propose temporary rules to limit Petrobras’ participation in auctions, stimulating competition and opening the gas market in the country and the regulation of production flow.
FLOW
Pires says that the federal government confirms that part of the high price of gas is due to what Petrobras charges for transportation and processing when it defines that the (National Energy Policy Council) needs to regulate these rates to avoid abuse and make gas cheaper for consumers.
“Through CNPE, regulate the flow rate and UPGN (Natural Gas Processing Unit). Because, according to the government itself, there is a certain monopoly abuse of Petrobras. So, what Petrobras charges in flow and UPGN would be one of the main reasons, along with the transport tariff, which greatly establishes the price of the molecule for the consumer.”these.
The Provisional Measure establishes that the CNPE determines the conditions of access to the integrated flow, processing and transportation of the Union’s Natural Gas, including the calculation of the access value.
The tariff charged for the use of gas transport and processing should be calculated technically and fairly, covering costs, investments and business risk, without increasing gas to the consumer.
The measure aims to allow PPSA to directly market the Union’s natural gas at more competitive prices, contributing to the reduction of costs for consumers and promoting national reindustrialization, without impacting the public budget.
Petrobras Out of Auctions
The natural gas market in Brazil is concentrated. About 70% of production and almost 80% of marketing are with Petrobras. Concentration makes competition difficult and maintains high prices, crashing the industry’s growth, according to Pires.
To stimulate a more dynamic market, amendments have been proposed that create conditions for other suppliers and traders to act.
For Pires, one of the proposals to increase competition – which suggests that PPSA’s auctioned gas is marketed by different agents from Petrobras – has the potential to decentralize the market.
“What you want is to open market and encourage the Gas Free Market so that there are other suppliers and traders. This PPSA gas needs to be marketed by non -Petrobras agents. She should be prevented from participating in the auctions for a while ”he declared.
For him, strong regulation is fundamental to unlock the monopolistic market and stimulate competition. A monopoly, if not regulated, prevents industry growth and maintains prices high, he says.
“When you have a sector that has a very strong presence of the monopolist, if you do not have a regulation that is strong at the time, you will not be able to unlock the market. It is as if this was the first moment to put the gear to spin. So you can have a more competitive market without reducing the price of gas.”
20% for trucks
There are amendments that propose that 20% of the natural gas auctioned by PPSA (pre-salt Petroleum S/A) is intended for use as a vehicle fuel, especially in trucks, with the objective of reducing diesel consumption and supporting the decarbonization of the transportation sector.
The measure also seeks to stimulate the beginning of a vehicle gas market in Brazil, which is still in the early stages, ensuring demand and encouraging investments and infrastructure in this sector.
For Pires, the suggestion is “interesting for fostering a market that begins to grow in Brazil ”. According to automaker Scania, there are about 1,500 natural gas moved trucks circulating through the highways in Brazil.
“The amendments propose that 20% of auctioned gas would go to fuel to reduce the use of diesel and help in the decarbonization program. And it is a market that is relevant in a 1st moment because it reduces diesel consumption and also the issue of decarbonization.”these.
But he also states that the destination cannot be performed forever, but only in first auctions.
“In the first auctions it may be a measure to encourage this market, which is the market that is starting in Brazil […] But it has to have a deadline. It is not for eternity. All auctions that will be made of PPSA gas in the next 100 years, the truck has 20%. It’s not that. I think you have to have a stipulated deadline that is to give that start on the program ”, declared.
Necessary intervention
Pires says it is against interventions and market reserves, recognizing that the destination of 20% of gas for use in trucks acts in practice as a market reserve. But he states that this is necessary to streamline the gas sector, creating a more competitive and rational market.
He states that this type of regulation should be temporary, serving only as long as there is a strong market concentration. For example, from preventing Petrobras from participating in auctions and the flow of natural gas is a valid measure while the state -owned company holds more than 50% of marketing. When your share drops to 50% or less, these restrictions can be reviewed, allowing the market to operate more balanced.
