Brazil’s Government Wants Lower Prices for Natgas Pipeline and Processing, Minister Says

Wedoany.com Report-Mar 19, Brazil could cut prices for firms to access gas pipelines and natural gas processing units, in a bid to lower consumer prices, Brazil's Minister of Mines and Energy Alexandre Silveira said on Tuesday.

Minister of Mines and Energy of Brazil Alexandre Silveira speaks during an interview in Houston, Texas, U.S. March 21, 2024.

Silveira was speaking at an event hours before the government released a new study on the subject.

State-run oil firm Petrobras is the leading operator of pipelines that transport the raw material produced offshore, where most of Brazil's production comes from. It also operates onshore gas processing units.

In Brazil, offshore gas producers pay Petrobras and private firms to use their pipelines and processing infrastructure at a cost the government believes is too high, which is passed on to consumers.

Without mentioning Petrobras or other energy companies, Silveira said the current system makes gas more expensive and added he was tasked by Brazil's President Luiz Inacio Lula da Silva to find ways to lower gas prices.

The government's proposed changes and estimates on how much it would cut prices for access to gas pipelines and processing units are detailed in a study by Brazil's Energy Research Company (EPE), said Silveira.

Petrobras did not immediately respond to a request for comment.