Brazil’s MME and ANP Assert Policy Alignment on Gas Market Reform Amid Petrobras Pushback

Renato Dutra, secretary for oil, gas and biofuels at the Ministry of Mines and Energy, stated at an ANP workshop on September 29 that the government’s gas agenda and the agency’s regulatory work are progressing in alignment, each within its respective sphere of authority. Dutra indicated there is no political interference from the ministry over the agency, noting the government’s gas agenda was approved by the National Energy Policy Council in 2024 and has advanced through dialogue with market participants and the regulator. The agenda encompasses gas release, access to production infrastructure and pipeline systems, and revision of transportation tariffs.

The gas release program, mandated under the 2021 Gas Law to reduce concentration in primary supply and bring more competitive pricing to final consumers, targets Petrobras’ approximately 60 percent share of the gas market. Dutra highlighted years of difficult dialogue involving government, multiple market agents and divergent interests. He expressed satisfaction that both the ministry’s policy work and ANP’s regulatory agenda are moving forward in alignment with national energy policy.

ANP director Pietro Mendes, speaking at the same workshop, challenged the notion that Brazil has a functioning gas market, questioning how a market can exist without multiple suppliers and buyers. Marcello Weydt, director of the Natural Gas Department at MME, argued that deconcentration of existing supply could reduce molecule prices to consumers, citing the Northeast region as an example. Both officials emphasized that current high gas prices and low rivalry among suppliers reflect a lack of competition resulting in supply scarcity.

The ANP closed public comment on the gas release consultation on September 29 and scheduled a public hearing for October 21. Petrobras and the Brazilian Petroleum Institute continue to protest the changes and the consultation timeline, which they consider insufficient given the topic’s significance. Alvaro Tupiassu, Petrobras natural gas manager, called the timeframe technically inadequate for such a profound discussion, arguing more time could be taken without missing mid-2027 implementation targets.

The alignment messaging from MME and ANP follows increased political pressure from Petrobras president Magda Chambriard, who organized meetings with senior government officials including the Civil House, Finance Ministry and MME to push Energy Minister Alexandre Silveira to block the agency’s regulatory agenda. Industry participants characterized Petrobras’ actions as grave, with one association indicating willingness to take any necessary steps to defend ANP and the gas release agenda. Mendes responded to the pressure during the workshop, stating the agency cannot accept any restriction on its regulatory activity.