Brazil gas industry sees risk on ‘hasty’ state laws

Brazil gas industry sees risk on ‘hasty’ state laws

Sao Paulo, 18 January (Argus) — Some of Brazil's largest natural gas consumers, pipeline companies and oil and gas producers are complaining that new state laws could reduce competition in the gas market.

Brazilian association of energy intensive consumers ABRACE, gas transporters' association Atgas, and Brazil's oil and gas institute IBP released a letter to the market drawing attention to risks they see from states' "hasty" drafting of laws, with little time for input from the sector.

Among the risks raised by the association is how transportation and distribution pipelines are being defined by state laws, which may ultimately conflict with federal regulations that will be drafted to implement provisions of the new national gas law.