The push for fairer pricing in the Brazilian natural gas market is gaining momentum.
Brazil’s energy sector is abuzz with heated debates over the structure of the natural gas market. Representatives from key bodies, such as the Ministry of Mines and Energy (MME) and the National Agency of Petroleum, Natural Gas and Biofuels (ANP), are reaffirming their commitment to implementing a gas release program—a strategic initiative aimed at curbing supply concentration and, consequently, the high prices reaching end consumers.
During a workshop held at FGV in Rio de Janeiro, Marcello Weydt, director of the MME’s Natural Gas department, identified the lack of rivalry among suppliers as a primary issue for the sector. According to Weydt, this shortage of competition directly results in higher prices and limited supply, creating a vicious cycle that must be broken. He noted that the experience in the country’s Northeast, which has already seen benefits from diversifying supply, serves as a promising model for expanding the measure.
ANP director Pietro Mendes reinforced the urgency of the situation, questioning how a market can truly function without multiple suppliers and buyers. He asserted that current price levels are unacceptable and that the push for a more dynamic and competitive market is imperative.
The ANP has concluded its public consultation period for the gas release, with a public hearing scheduled for October 21. However, progress faces resistance from Petrobras and the IBP (Brazilian Institute of Petroleum, Gas and Biofuels). These entities argue that the consultation timeframe was insufficient for an in-depth analysis of the proposals, given the magnitude and complexity of the issue.
Alvaro Tupiassu, Petrobras‘ natural gas manager, expressed the company’s concern, arguing that an extended deadline would allow for more robust and technically sound contributions without compromising medium-term objectives. Daniela Santos, director of Natural Gas at the IBP, echoed this sentiment, emphasizing the need for more time to evaluate the draft and ensure that final conclusions are well-founded.
Pietro Mendes, however, pushed back, suggesting that delaying the gas release discussion only creates greater regulatory uncertainty for exploration and production investments. He maintains that establishing clear rules is more beneficial for long-term planning than stalling the debate.
Gas Release and the New Gas Law
The gas release initiative is a direct outcome of the new Gas Law (Law No. 14.3134/2021), which has already triggered significant shifts in the sector. One example is the decentralization of the pipeline transport network, previously under exclusive control of Petrobras and now divided between NTS and TAG.
Artur Watt, Director-General of the ANP, highlighted the trend of a steadily opening market. Between 2020 and 2025, the number of traders doubled, growing from 122 to 226. The total number of shippers also saw substantial growth, jumping from 71 to 149, while the number of importers expanded from 12 to 15. The number of free consumers tripled, rising from 8 to 90 during the same period, signaling a market in clear expansion and diversification.
Petrobras, meanwhile, argues that market concentration has already fallen considerably, with its market share dropping from 90% to 55% in the non-thermoelectric segment and to 27% in the thermoelectric segment—with projections to reach 18% by 2030. According to the state-owned company, this reduction makes a gas release unnecessary at this time.
The controversy surrounding the gas release highlights the complexity of transitioning to a more competitive and accessible gas market. While the ANP and MME seek to expedite the process, Petrobras and the IBP advocate for a more cautious approach, stressing the importance of ensuring legal and technical security for all stakeholders. The outcome of this discussion will have direct implications for the future of natural gas supply in Brazil.
