Brazil is facing the driest hydrology ever recorded in the country. This year, the country will test the operational limits of its gas infrastructure and thermal power plants. But despite energy security requirements, the lack of demand from electricity distribution companies poses challenges to the re-contracting of existing thermal power plants. Meanwhile, the gas procurement call by distribution companies and transport capacity auctions still expected this year will result in immediate firm gas and LNG commercialisation opportunities. Beyond 2021, the recently issued new gas law aims to provide a competitive market framework by unlocking gas transport capacity and third-party access to essential facilities. However, final investment decisions for gas fields and exploration success will remain the main drivers of supply competition, prices and new gas infrastructure development. • What is driving future gas prices in Brazil.