The United Federation of Oil Workers (FUP) proposes suspending the Gas Release program and revamping the national gas policy to lower prices and foster industrial development.
The United Federation of Oil Workers (FUP) has publicly declared its support for the suspension of the Gas Release program, an initiative established by the New Gas Law in 2021. The organization also advocates for the urgent development of a new national policy for the natural gas sector. Aligning with analyses from the Institute of Strategic Studies on Petroleum, Natural Gas, and Biofuels (Ineep), the FUP argues that the current measure, which compels dominant players to make gas volumes available to other market participants, fails to address the primary factors dictating the prices paid by consumers and industry.
The central criticism lies in the premise that simply introducing more players into the market does not, in itself, guarantee an increase in supply or a subsequent reduction in prices. The complexity of the natural gas chain, encompassing everything from production and transportation to processing, infrastructure, and distribution, is highlighted as a crucial factor. The costs associated with each of these stages, combined with variations in state regulations, contribute to the final fuel price, rendering the current approach insufficient.
Risk to Strategic Investments
The FUP also raises an important alert regarding the potential negative impacts the current policy may have on vital investments aimed at expanding the national gas supply. Projects like Sergipe Águas Profundas (Deepwater Sergipe), which require approximately US$1 billion in investment for export infrastructure, are critical. This project, in particular, has the potential to add a significant 18 million cubic meters of gas per day to Brazil’s supply, a fundamental increase for the country’s energy security. Regulatory uncertainty and the questionable effectiveness of Gas Release could discourage such investments, jeopardizing future supply.
A New Vision for Natural Gas and Biomethane
For the FUP, natural gas and biomethane should be recognized and treated as strategic inputs, essential for both the development of national industry and the promotion of the energy transition. The organization proposes that a truly effective policy for the sector should combine robust planning, clear and effective regulation, substantial infrastructure investments, and strong coordination among the various links in the production chain. Only through this integrated approach will it be possible to significantly increase supply and, consequently, reduce costs for Brazilian industry and consumers.
“It’s not enough to redistribute the existing molecule. Brazil needs to increase supply, invest in infrastructure, and ensure that the gas produced here reaches consumers at competitive prices. The objective of a national policy for the sector must be the country’s development, not just market decentralization,” states Cibele Vieira, FUP’s general coordinator. This perspective reinforces the need for a strategy that goes beyond merely restructuring the existing market, focusing on growth and competitiveness.
The FUP’s proposal represents a call for reflection on the direction of Brazilian energy policy. By advocating for the suspension of Gas Release and the development of a new strategy, the organization seeks to ensure that the potential of natural gas and biomethane is fully leveraged for Brazil’s economic development and environmental sustainability. The expectation is that this discussion will drive broader debate and promote concrete actions for a more promising energy future.
