Skip to main content
SpringerLink
Log in
Book cover

Energy Law and Regulation in Brazil pp 91–112Cite as

Regulatory Challenges of Natural Gas Downstream in Brazil

  • Chapter
  • First Online:

  • 279 Accesses

Abstract

In this chapter we describe the history of the natural gas activities in the Brazilian downstream sector. In addition, we highlight natural gas constitutional and legal frameworks, including attributions and competences of the regulatory agency. In this sense, Gas Law is compared to Brazilian challenges for the expansion of the natural gas market as well as some of natural gas regulatory risks are studied. Finally, we draw conclusions.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   49.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   64.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   89.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    Available at: http://naturalgas.org/overview/history. Access on 08.06.2015.

  2. 2.

    We should remind that until the beginning of 1990, the piped distribution solely in the States of São Paulo and Rio de Janeiro was of gas produced as of the gasification of the liquid naphtha derived from petroleum.

  3. 3.

    Petrobras has been the single producer and carrier. The distribution companies are State controlled. The full competition has been occurring in the sale of vehicle natural gas VNG to the final users in the gas stations of several flags.

  4. 4.

    The State of Pará and Santa Catarina have regulated these services through State Law No. 7.719/2013 and State Law No. 9.493/1994, respectively.

  5. 5.

    The States of Amazon and São Paulo regulated these services through Regulatory Decree No. 30.776/2010 and Regulatory Decree No. 43.889/1999, respectively.

  6. 6.

    One should mention the standards issued by the state regulatory agencies that have jurisdiction to regulate the piped gas services.

  7. 7.

    Petróleo Brasileiro S.A. (Petrobras), a mixed-capital company organized in 1953.

  8. 8.

    According to the Natural Gas Industry Follow-up Monthly Bulletin produced by the Ministry of Mines and Energy, considering data from August 2017, the Total Offer to the Market reaches a sum of 100.6 million of m3/day, distributed as follows: 76.4 of sales of the state distributors, 13.9 used by Refineries and Fertilizers Companies and 9.16 of Direct Thermal Consumption of Producer and Free Consumers. Available at: http://www.mme.gov.br/documents/1138769/0/Boletim_Gas_Natural_nr_126_AGO_17.pdf/570f9d68-8388-4008-a706-1b929685d171. Access on 31.10.2017.

  9. 9.

    Available at: http://www.gaspetro.petrobras.com.br/gaspetro/conteudo/transporte-de-gas-natural.htm. Access on: 31.10.2017.

  10. 10.

    Available at: http://www.brasil-rounds.gov.br/round_12/index_e.asp. Access on: 31.10.2017.

  11. 11.

    All blocks are located in the SPAR-CS sector of the Paraná basin. Including concession contracts for the PAR-T-300 blocks and PAR-T-309 blocks PAR-T-271, PAR-T-272, PAR-T-284, PAR-T-285, PAR-T-286, PAR-T-297, T-PAR 298, PAR-T-308 and PAR-T-321. In addition, by judicial decision, the Board of the ANP overturned the signing of the concession agreement for the PN-T-597 block, located in SPN-O sector of the Parnaíba Basin. Available at: http://www.brasil-rounds.gov.br/round_12/index_e.asp. Access on: 31.10.2017.

  12. 12.

    Available at: http://www.brasil-rounds.gov.br/round_13/ingles_R13/setores.asp. Access on: 31.10.2017.

  13. 13.

    Available at: http://www.brasil-rounds.gov.br/round_13/ingles_R13/asscontrato.asp. Access on: 31.10.2017.

  14. 14.

    Available at: http://www.brasil-rounds.gov.br/Round_14/ingles_R14/setores.asp. Access on: 31.10.2017.

  15. 15.

    Available at: http://www.brasil-rounds-data.anp.gov.br/relatoriosbid/Bloco/ConsolidadoBlocoDesktop/27. Access on: 31.10.2017.

  16. 16.

    Available at: http://www.brasil-rounds-data.anp.gov.br/relatoriosbid/Bloco/ConsolidadoBlocoDesktop/29. Access on: 31.10.2017.

  17. 17.

    Available at: http://visoesdogas.com.br/como-construir-uma-nova-era-do-gas-natural-para-o-brasilricardo-pinto/. Access on: 31.10.2017.

  18. 18.

    Available at: http://www.rcgilex.com.br/static/files/working_paper.pdf. Access on: 31.10.2017.

  19. 19.

    Available at: http://www.rcgilex.com.br/static/files/working_paper.pdf. Access on: 31.10.2017.

  20. 20.

    Office of Gas and Electricity Markets—OFGEM. 2014 Great Britain and Northern Ireland National Reports to the European Commission, 2014, p. 62. Available at: https://www.ofgem.gov.uk/sites/default/files/docs/2014/08/national_report_2014_updated_0.pdf. Access on 08/18/2015.

  21. 21.

    Available at: http://naturalgas.org/regulation/market/. Access on: 08.18.2015.

  22. 22.

    Available at: http://www.mme.gov.br/web/guest/conselhos-e-comites/cnpe;jsessionid=5662A957FE67CBD0A0AB25AD32D4B876.srv155. Access on: 08.24.2015.

  23. 23.

    ANP Resolution No. 16/20.

  24. 24.

    Non-processed gas to attend the ANP specifications.

  25. 25.

    Regional Federal Court of the 2nd Region, 7th Specialized Class, Civil Appeal No. 2005.51.01.017234-4, J. 10/20/2010).

  26. 26.

    Regional Federal Court of the 1st Region, 5th Class, Civil Appeal No. 0000490-90.2010.4.01.3400/DF, J. 08/01/2012.

  27. 27.

    Article 15. The operational exchange of natural gas, called swap, must be requested to shippers by the interested carriers under the regulation established by ANP. § 1. Revenues from operating exchange should be reversed to reduce transportation fees and to cover the additional costs of the shipper and its return on invested capital to be approved by the ANP. § 2 The ANP will establish the new tariff to be paid by shippers considering the provisions of § 1. § 3. The new tariff established by the ANP for the agent to apply for the swap, under § 2, shall not be less than the existing tariffs, albeit in reverse flow.

  28. 28.

    Article 48. It secured the third-party access to transport pipelines, subject to the period of exclusivity. Sole paragraph. Operational exchange of natural gas, referred to in Article 15, is considered as third-party access to transport pipelines.

  29. 29.

    The original text and the suggestions of interested economic agents are available on the website: http://www.anp.gov.br/?pg=76970&m=&t1=&t2=&t3=&t4=&ar=&ps=&1438365655099. Accessed on 08/31/2015.

  30. 30.

    The Council shall promote the conclusion of agreements to effect the grant or revocation of exemptions, tax incentives and tax benefits mentioned in item II of Article 155 of the Constitution, in accordance with the provisions of § 2, item XII, letter “g” in the same article and Complementary Law No. 24 of January 7, 1975.

  31. 31.

    National Agency of Petroleum, Natural Gas and Biofuels—Superintendence of Commercialization and Movement of Oil, Derivatives and Natural Gas. Interconnection and Reclassification of Pipelines: Regulation, Investment, Coordination and Cooperation between EU and Brazilian States. Technical Note 004/2012/SCM. April 2012. Available on the Internet: http://www.anp.gov.br/SITE/acao/download/?id=59994. Accessed on 31.10.2017.

  32. 32.

    National Agency of Petroleum, Natural Gas and Biofuels - Superintendence of Commercialization and Movement of Oil, Derivatives and Natural Gas, op. cit., pp. 20 and 21.

  33. 33.

    National Agency of Petroleum, Natural Gas and Biofuels—Superintendence of Commercialization and Movement of Oil, Derivatives and Natural Gas, op. cit., p. 14:15.

  34. 34.

    National Agency of Petroleum, Natural Gas and Biofuels—Superintendence of Commercialization and Movement of Oil, Derivatives and Natural Gas, op. cit., p. 16.

  35. 35.

    It should be informed that the concession agreement of Comgás in São Paulo, and of CEG in Rio de Janeiro when they were privatized.

  36. 36.

    Resolution ANP no 52/2011. Authorization for marketing at the federal level requiring the federal state to also authorize, at the state level the marketing of natural gas, like São Paulo, with ARSESP Resolution No. 230 of 05.26.2011.

  37. 37.

    Ibidem, p. 127.

  38. 38.

    Superior Court of Justice, AgRg in REsp No. 1206723/MG, J. 05/17/2012.

  39. 39.

    Superior Court of Justice, REsp 1127403/SP, J. 04/02/2014.

  40. 40.

    Article 177—The following are monopoly of the Federal Government […] IV—ocean transportation of crude oil of domestic origin or of basic petroleum products produced in the country, as well as transport, through pipelines, of crude oil, oil products and natural gas of any origin.

  41. 41.

    The ANP Resolution No. 15/2014 regulates the criteria for calculation of transport rates related to the firm Transport Services, interruptible and extraordinary of natural gas.

  42. 42.

    There is several information on the production and import of natural gas by other agents but not yet confirmed.

  43. 43.

    Among them, we highlight the royalties and special participation.

References

  • Costa HKM (2006) A regulação do livre acesso na distribuição de gás natural canalizado: o caso de São Paulo. Master Thesis defended at IEE/USP. http://www.teses.usp.br/teses/disponiveis/86/86131/tde-11092012-121801/pt-br.php. Access: 08.27.2015

  • Costa MD’A (2011) Contratos de Gás no Direito Brasileiro. In: Direito do Petróleo e outras Fontes de Energia. Lumen Juris, Rio de Janeiro

    Google Scholar 

  • Costa MD’A (2015) O CNPE e a importância da política pública para o gás natural no Brasil. In: Gás Natural no Cenário Brasileiro. Synergia, Rio de Janeiro

    Google Scholar 

  • Costa HKM et al (2017) A regulatory overview from Brazilian natural gas market. Working Paper Number 01. www.rcgilex.com.br. Accessed 28 Sept 2017

  • Costa MD’A, Rodrigues LFM (2008) A irradiação de efeitos nos contratos coligados: ponderações iniciais. In: Revista do Direito da Energia, n° 08. IBDE, São Paulo, p 132

    Google Scholar 

  • de Sá Ribeiro MR (2014) Direito do Petróleo, 3 Edição. Renovar, Rio de Janeiro

    Google Scholar 

  • Fiuza de Bragança GG (2015) Risco Regulatório no Brasil: Conceito e Contribuição para o Debate, Instituto de Pesquisa Econômica Aplicada – IPEA. Boletim de Análise Político-Institucional, n° 07, Jan–Jun

    Google Scholar 

  • Loss GR (2007) A regulação setorial do gás natural. Fórum, Belo Horizonte

    Google Scholar 

  • Mano G (2010) Indústria brasileira do gás natural: a Lei do Gás e os conflitos legais e regulatórios entre a União Federal e os Estados. Master Thesis defended at UNIFACS. http://tede.unifacs.br/tde_busca/arquivo.php?codArquivo=439. Access: 08.27.2015

  • Marino FPdC (2009) Contratos Coligados no Direito Brasileiro. Saraiva, São Paulo

    Google Scholar 

  • Neto M, de Azevedo F (2015) Concessões. Fórum, Belo Horizonte

    Google Scholar 

  • Pereira CAG, Olbertz K, de Castro Alves Montenegro DO (2011) Oil and gas regulation in Brazil. In: Infrastructure law of Brazil, 2nd edn. Fórum, Belo Horizonte

    Google Scholar 

  • Sampaio PRP (2014) Regulação da atividade de petróleo e gás natural no Brasil. In: Guerra S (Org.) Regulação no Brasil. Uma visão multidisciplinar. Editora FGV, Rio de Janeiro

    Google Scholar 

  • Schirato VR (2011) O Novo Regime Jurídico da Indústria do Gás Natural no Brasil. In: Direito do Petróleo e de Outras Fontes de Energia. Lumen Juris, Rio de Janeiro

    Google Scholar 

Download references

Acknowledgments

The authors are grateful to Daniel Rehem Gama, lawyer graduated from the University of São Paulo School of Law and specialized in energy regulation.

Author information

Authors and Affiliations

  1. Assunção Consultoria, Sao Paulo, Brazil

    Maria D’Assunção Costa

  2. Institute of Energy and Environment, University of Sao Paulo, Sao Paulo, Brazil

    Hirdan Katarina de Medeiros Costa & Edmilson Moutinho dos Santos

Authors
  1. Maria D’Assunção Costa
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hirdan Katarina de Medeiros Costa
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Edmilson Moutinho dos Santos
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Hirdan Katarina de Medeiros Costa .

Editor information

Editors and Affiliations

  1. Faculty of Law, University of Sao Paulo, Sao Paulo, Brazil

    José Augusto Fontoura Costa

  2. Faculty of Law, Rio de Janeiro State University, Rio de Janeiro, Brazil

    Marilda Rosado de Sá Ribeiro

  3. Department of Law, Federal Rural University of Rio de Janeiro, Rio de Janeiro, Brazil

    Ely Caetano Xavier Junior

  4. Faculty of Law, University of Sao Paulo, Sao Paulo, Brazil

    Vivian Daniele Rocha Gabriel

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer International Publishing AG, part of Springer Nature

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Costa, M.D., Costa, H.K.d.M., dos Santos, E.M. (2018). Regulatory Challenges of Natural Gas Downstream in Brazil. In: Fontoura Costa, J., Rosado de Sá Ribeiro, M., Xavier Junior, E., Rocha Gabriel, V. (eds) Energy Law and Regulation in Brazil. Springer, Cham. https://doi.org/10.1007/978-3-319-73456-9_5

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-73456-9_5

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-73455-2

  • Online ISBN: 978-3-319-73456-9

  • eBook Packages: Law and CriminologyLaw and Criminology (R0)

Publish with us

Policies and ethics

Search

Navigation