Brazil’s Government is preparing a plan to grant the National Agency for Petroleum, Natural Gas and Biofuels increased authority over the operation of natural gas projects, reported Bloomberg.
The move aims to augment supplies and reduce prices for consumers.
A draft reviewed by the publication indicates potential changes to how producers manage gas reinjection into reservoirs and establish production levels.
Mines and Energy Minister Alexandre Silveira stated that the government is consulting with the industry to enhance the availability of fuel.
The forthcoming decree is intended to regulate, not intervene in, the natural gas market, Silveira added.
He confirmed that the new decree would increase the regulator’s control over gas reinjection levels.
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By GlobalDataThe minister also noted that these changes would not be applied retroactively to projects where investments have already been made.
In a conference, the minister said: “We have to look for the international average of re-injection,” as gas management is a matter of public policy.
The administration of President Luiz Inacio Lula da Silva is focusing on increasing natural gas supplies to stimulate industrial activity.
However, the proposed regulatory changes, which include reviewing the development plans of existing concessions, could prompt oil companies to approach offshore gas reinjection – a technique used to maintain underground pressure and aid oil production – with caution.
The draft decree suggests that concession rights could be transferred to alternative operators in cases of noncompliance.
It also outlines the establishment of natural gas production hubs to optimise processing capacity across multiple fields.
Additionally, the regulator may restrict natural gas exports to safeguard domestic supply.
Petrobras, Brazil’s state-owned oil and gas producer, along with international companies such as Equinor and Shell, is developing offshore projects with significant associated gas volumes.
Earlier this month, Petrobras received environmental licences to boost oil production at the Mero and Buzios fields in the Santos Basin in the Atlantic Ocean.
