Start Public hearing discusses regulation of the piped gas market in Rio Grande do Norte on Wednesday with the participation of ABPIP

Public hearing discusses regulation of the piped gas market in Rio Grande do Norte on Wednesday with the participation of ABPIP

April 27, 2022 8:49 am to 08:49
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alrn defines piped gas market rules
alrn defines piped gas market rules Image source: Correio Braziliense




The public hearing on the regulation of the piped gas market in Rio Grande do Norte could change the destiny of this State.

The new regulation of the piped gas market in Rio Grande do Norte will be discussed at a public hearing next Wednesday, April 27 at 2 pm, in the Cortez Ferreira auditorium in the State Legislative Chamber. The objective is to deal with the opening of the market and potential new business.

Among those invited to the meeting we can count the Brazilian Association of Independent Oil and Gas Producers (ABPIP) represented by its executive secretary Aníbal Santos Júnior and by legal advisor Daniela Santos.

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 In addition, members of the National Agency for Petroleum, Natural Gas and Biofuels were invited (ANP), the Brazilian Association of Large Industrial Energy Consumers and Free Consumers (HUG), Potigas, the Ministry of Mines and Energy, the Secretariat of Infrastructure of the Government of the State of Bahia, Redepetro RN, Petrobras, 3R Petroleum Óleo e Gás SA, FIERN, the Civil Office of the Government of the State of Rio Grande do Norte and the State Secretariat for Economic Development of Rio Grande do Norte.

Video on the importance of the new gas market by the Ministry of Mines and Energy

A new gas law for a new gas market – Via MME

Since the opening of the natural gas supply market, consumers have been paying less and less for gas. There was a reduction of up to 35% in the value of the molecule in relation to the values previously practiced by Petrobras, which proves that competition in the sector is beneficial to the consumer.

The public hearing aims to adjust the state's policies in relation to Bill 371/21, which establishes the rules for the exploitation of local piped gas services, clearly defining the functions of the state and the Federal Government within this market.

“The initiative of calling for the public hearing was very welcome at ABPIP. The state of Rio Grande do Norte has shown concern in listening to the various agents in the oil and gas sector, in order to present a state law more adhering to the national one, a competitive difference compared to other states. We look forward to reaching an understanding at this meeting”, said Santos Jr.

What does ABPIP defend different from the original project? 

The association defends some changes in the legislation initially offered by the State, always aiming at increasing the investments in natural gas in Rio Grande do Norte and the market is always freer for the consumer.

Some of the points of change advocated by the ABPIP include:

  • Adjustments to vendor settings. 
  • Operational agreement.
  • Change in the concept of free, partially free and captive consumers.
  • Change in distribution pipeline legislation.
  • Facilitation of local piped gas services.
  • Facilitating the creation of unique pipeline systems.

 In addition, there are discussions about changes in the rules regarding the Free Market, tariffs and cost approval, in addition to other technical details such as separation of activities and authorization of the trader.

Finally, one of the key points includes facilitating the issuance of the RADA (environmental performance assessment report), one of the biggest obstacles to operating natural gas competitively in Rio Grande do Norte, since environmental licensing fees are still the highest in Brazil.

What are the anticipated impacts of these changes?

All the changes that ABPIP will bring to the public hearing on the piped gas market in Rio Grande do Norte are supported by a document that shows the difference in the state's score in a ranking created by ABRACE.

This ranking indicates the ease with which a person can join the piped gas market, the higher the score, the easier it is to join and, consequently, the market's development.

In the configuration of the current Law, the State of Rio Grande do Norte would be in tenth place in the ranking, with only 34 points out of a possible 100.

With the changes suggested by the ABPI, according to forecasts, it would be possible for the state to reach the top of the ranking, even surpassing Bahia, the current leader of the ranking with 67 points, reaching the mark of 77 points out of a possible 100. 

Of course, there are other points of view on this regulation, which will be taken by the other invited entities, such as that of Adriano Pires, demonstrated here by reporter Daniel Ritnner.

Anyway, after this public hearing, Rio Grande do Norte will have changes in its rules on the piped gas market.

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