Brazil’s new gas law: unlocking transport capacity and essential facilities

Almost five years after the Gas to Growth initiative was introduced, the Brazilian government issued a new gas law (Lei 14.134) on 8 April. The new law will provide legal framework for the different activities across the gas value chain, especially piped transport. Transport companies can now migrate their gas transport agreements (GTAs) with Petrobras to new GTAs with Petrobras itself and third parties under the entry-exit tariff system. The new law will also guarantee third-party access to gas infrastructures such as gathering, processing, LNG terminals, and storage. In this insight, we explore the different commercial impacts of the new gas law on the value chain, its risks, and if it will deliver competition and “cheap” gas prices as promised.