Access to Gas Infrastructure Could Become 70% Cheaper with ANP Regulation. MME Director Marcello Weydt Highlights Competition as Central Focus for Brazil’s Gas Sector Future.
Competition in the Brazilian natural gas market faces a significant hurdle: the high access costs to essential offloading and processing infrastructure. This is the assessment of Marcello Weydt, Director of the Natural Gas Department at the Ministry of Mines and Energy (MME), who sees the actions of the National Agency of Petroleum, Natural Gas and Biofuels (ANP) as key to a drastic reduction in these values.
Currently at US$8 per million BTU, the cost of using these structures could be reduced to approximately US$2.5 per million BTU, if their compensation is appropriately defined. This measure is seen as fundamental to unlock the potential of pre-salt gas and foster a more dynamic and accessible business environment in the energy sector.
Infrastructure: The Competition Bottleneck
Marcello Weydt, during his participation in the *gas week* podcast, emphasized that, despite the competitive price of the gas molecule extracted from the pre-salt, the entry barrier imposed by the high costs of using infrastructure remains the main challenge. The disproportion between the charged value and what would be fair for an already depreciated and amortized structure prevents the advancement of true competition, as diagnosed by the Gas for Employment program.
“Now, we are depending on the ANP’s own actions.”
The ANP has demonstrated proactivity in reversing this situation. Recently, the agency took important steps, such as approving the public consultation for new rules of access to offloading and processing. Additionally, a special commission was created to investigate possible anti-competitive practices by Petrobras regarding Pré-Sal Petróleo (PPSA)‘s access to pre-salt gas structures. The opposition from oil companies, which own these infrastructures, is seen by Weydt as a natural reaction to this opening agenda.
Paths to a More Efficient Market
The MME and other regulatory bodies are seeking solutions for the development of the gas market. One of the points addressed by Weydt is the future federal gas auction, which promises to bring transparency to market prices, revealing the equilibrium point between supply and demand. This auction is considered a strategic opportunity to not only valorize national production, including fields such as Raia, Sergipe Águas Profundas, and Gato do Mato, but also to integrate and monetize Argentine gas.
Regulatory harmonization between the Federal Government and the states is another essential pillar, with the first meeting of the pact scheduled for October. This dialogue is crucial to avoid the judicialization of conflicts, ensuring a more stable and predictable business environment. In its agenda, the MME also foresees the discussion of resolutions on guidelines for gas import and export and for a contingency plan for natural gas supply, topics that will be debated with federative entities, solidifying planning for the country’s energy security.
The reduction of essential infrastructure costs is a catalyst for a more competitive and transparent gas market in Brazil. The expectation is that the ANP‘s regulatory actions, combined with MME policies, will foster an environment that benefits consumers and stimulates new investments in the energy sector, consolidating natural gas as a fundamental pillar for the country’s sustainable economic development.