Brazil's CNPE Set to Discuss New Natural Gas Marketing Policy Amid Petrobras Stalemate

Brazil's energy policy council CNPE is set to meet on Wednesday (29) to discuss a resolution changing the federal government's natural gas marketing policy.

The current policy, governed by CNPE Resolution No. 15/2018, grants Pré-Sal Petróleo SA (PPSA) authority to enter into contracts with marketing agents or directly market the government's oil and natural gas through auctions.

The new resolution aims to define a gas supply policy that increases the use of natural gas in Brazil on an economic basis. The government sees two paths: selling gas by PPSA and deconcentrating the market, which is controlled by Petrobras.

The first path faces resistance due to negotiations between PPSA and Petrobras over access to Petrobras' essential gas infrastructure, such as export pipelines and treatment units.