The MME is launching a swift public consultation for the first in a series of pre-salt gas auctions, targeting the national industry with competitive prices starting in 2026.
The Ministry of Mines and Energy (MME) has taken a significant step in the commercialization strategy for natural gas belonging to the Union. A draft ordinance detailing the guidelines for the upcoming gas auction has been made available for public consultation, signaling the commencement of a process aimed at optimizing the use and distribution of this resource derived from the pre-salt production-sharing agreements.
The initiative designates Pré-Sal Petróleo SA (PPSA) as responsible for conducting the auction, either directly or indirectly. The primary focus is on the heavy industry sector, promising a new supply scenario and, potentially, cost reductions for key sectors of the Brazilian economy, thereby boosting competitiveness and the pursuit of more efficient energy solutions.
The consultation, published in the Official Gazette of the Union (DOU) on September 10, allows an exceptionally short five-day period for contributions, concluding on September 14.
This limited timeframe reflects the MME‘s urgency in moving forward with the proposal, which outlines a series of annual auctions between 2026 and 2030, as established by resolution nº 15/2026 of the National Council for Energy Policy (CNPE).
Auction Calendar and Mechanisms
The first natural gas auction is scheduled for October 2026, with the volumes awarded to be delivered the following year. In addition to the scheduled auctions, PPSA will have the prerogative to hold complementary auctions, with deliveries occurring in the same year as the auction.
This flexibility is intended to ensure continuous production flow and meet emergency market demands, thereby strengthening the country’s energy security with a strategic resource.
Initial Focus on Heavy Industry
The draft ordinance specifies that the initial round of each gas auction will be exclusively for free consumers in the heavy industry sectors. This includes vital segments such as chemical and petrochemical, fertilizers, steel, metallurgy, and mining, in addition to the ceramics and glass sectors.
Companies’ eligibility will be strictly defined by their National Classification of Economic Activities (CNAE) code, ensuring that only industries with specific profiles can compete in this preferential phase.
To ensure equitable distribution, the MME proposes that the natural gas be offered in contracts of 20,000 cubic meters per day each, with the total available volume divided equally among the qualified industrial sectors.
Each company may participate in only one sector and acquire a maximum of eight contracts, limiting the volume to 160,000 cubic meters of gas per day. In the event of remaining volumes, an additional round will be opened for the heavy industry, removing the contract limits and allowing companies eligible in multiple sectors to compete in more than one category.
Only after all rounds designated for the heavy industry are concluded will other free consumers, traders, distributors, and transporters have the opportunity to access the Union’s gas. In these cases, PPSA may negotiate the remaining volumes at market prices, in accordance with the guidelines of CNPE resolution nº 15/2026.
Infrastructure Challenges and Price Potential
Currently, PPSA faces a significant bottleneck: despite reaching a production of 398,000 cubic meters of gas per day in June, it lacks direct access to evacuation and processing infrastructure.
This forces the sale of gas “at the wellhead” to other oil and gas companies, limiting the Union’s capacity to direct the resource for strategic uses and negotiate more advantageous prices for the domestic market.
“The expectation is that the measure could generate a significant impact on production costs, making the Union’s natural gas accessible at a substantially lower price, boosting the competitiveness of the Brazilian industrial sector,” highlights an MME assessment, projecting the possibility of offering the gas to end customers at about one-third of the prices currently practiced by the industry.
In 2022, PPSA sought access to Petrobras‘s evacuation and processing facilities, but negotiations did not advance. Facing the impasse, the National Agency of Petroleum, Natural Gas and Biofuels (ANP) intervened in July of this year, establishing a commission to mediate discussions and unlock access to this vital infrastructure.
The MME‘s initiative, despite the tight deadline for public consultation, represents a strategic move for the utilization of pre-salt natural gas and the strengthening of Brazilian industry. The implementation of annual auctions and the overcoming of infrastructure challenges are crucial for transforming this resource’s potential into an economic driver and a key element in the country’s energy transition. The ANP‘s engagement in negotiations with Petrobras will be decisive in ensuring that the Union’s gas reaches end consumers at the expected price and with the anticipated security.
