Brazil gas industry seeks new rules and lower taxes

Brazil gas industry seeks new rules and lower taxes

Sao Paulo, 12 April (Argus) — Brazilian natural gas industry participants identified four key actions that require public support to help the newly-opened market reach an "efficient regulatory and taxes environment".

A letter on the four points, signed by gas producers, consumers and midstream companies, was handed to the minister of mines and energy Bento Albuquerque at a one-year anniversary ceremony for the gas law held in Sergipe state.

The first point is the continuation of regulator ANP's update of regulations, with 13 topics that need to be revisited and updated as a result of the new law. The industry ask ANP to be guided by building "a broad market, based at an integrated infrastructure for transportation, which results in lower transaction costs, broadening the flexibility and guaranteeing supply security, and with the correct price signal."

A coordination between federal and the state governments to ensure consistent and complementary federal and state laws was the second point of focus in the letter. The objective is to create a cohesive regulatory environment, which leads to "the development of the free bilateral market," according to the letter.

For the third point the participants were critical about antitrust agency Cade's recent decision to give unrestricted approval to