Q&A: New Brazil gas market needs more infrastructure

Q&A: New Brazil gas market needs more infrastructure

Sao Paulo, 21 January (Argus) — Origem Energia, an oil and gas producer andone of the companies investing in the newly opened Brazilian natural gas market, will soon announce the purchase of more assets through state-run Petrobras' divestment process. Luiz Felipe Coutinho, the company's chief executive officer, talked to Argus about the plans.

How can gas industry participants help increase competition in Brazil?

The new gas law and the market opening process just correct part of the problem, which was the distortion of the market, a monopoly, which results in higher gas prices than the prices resulting from competition. But thinking about the competitiveness of natural gas, we first need to define what is ‘competitive', which in our view is a tripod: price, (demand) flexibility and low penalties [for not delivering or receiving contracted gas volumes].