A PYMNTS Company

Brazil Passes New Natural Gas Law For Foreign Investors

By  |  March 17, 2021

Brazil’s lower house approved a new regulatory framework for the natural gas sector in the early hours of Wednesday, March 17, a move the government hopes will increase competition in the industry, reported Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The bill, which garnered support from industrial consumers, will now be signed into law by President Jair Bolsonaro.

    “In this difficult moment, this approval bodes well for the economy,” said Paulo Pedrosa, president of Abrace, an industry group of large energy users.

    He said the new law would help attract new investments to the sector and increase predictability.

    Under the bill, companies interested in building gas pipelines will need a simple authorization rather than a more complex concession contract. Energy regulator ANP will have more power to foster competition and reduce market concentration.

    The new law allows power companies to distribute gas for industrial use, an area that used to be under state monopoly.

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.