Brazil Suspends 2026–2030 Natural Gas Transportation Rate Review for 15 Days

en.Wedoany.com Reported - On November 9, Brazil's National Agency for Petroleum, Natural Gas and Biofuels (ANP) decided to suspend Phase 3 of the 2026–2030 natural gas transportation rate review procedure for 15 days, postponing the launch of public consultations and hearings concerning the rate calculation methodology, maximum allowed revenue, and transportation tariffs. This adjustment stems from a negotiation request submitted by Petrobras and the Southeastern Gas Transportation Company (NTS), which intend to study ways to reduce natural gas pipeline network transportation costs through an agreement.

Brazil's Ministry of Mines and Energy submitted a formal letter to ANP conveying the intention of Petrobras and NTS to pursue negotiations. The two companies plan to seek solutions regarding the tariff arrangements of NTS's natural gas transportation network, aiming to reduce transportation costs while establishing a sustainable tariff mechanism, and have requested that the regulator allow 15 days for the relevant negotiations.

ANP has simultaneously suspended the administrative appeals previously filed by natural gas transportation companies regarding the rate adjustment procedure, while necessary matters concerning the maintenance of statutory deadlines and ensuring the continuity of natural gas transportation services may continue to be processed. The regulator has asked its Infrastructure and Transportation Management Department and the Federal Legal Advisory Department to study whether negotiated agreements between transportation service buyers and transporters could replace the conventional rate review procedure, while safeguarding the legitimate rights and interests of other network users.

Petrobras and the transportation companies participating in the negotiations must formally submit the negotiated terms, proposed conditions, and supporting research documents to ANP within 15 days. The regulator will assess the impact of the agreement on natural gas transportation rates, other transportation service buyers, and the overall natural gas market. ANP will also consult other transportation companies subject to the current rate review to determine whether they are interested in pursuing similar negotiations with their customers.

The review timetable will also be reassessed. ANP has asked its technical departments to estimate the impact of this suspension on the 2026–2030 rate review cycle and to study whether the review procedure can proceed separately for transportation companies not participating in the negotiations. The regulator will also assess natural gas supply risks and the legal and regulatory measures needed to ensure that approved pipeline network investments continue to be implemented.

ANP has decided to inform the Natural Gas Transportation Users Committee of the negotiation progress and to allow the Committee to submit opinions on the relevant arrangements. The regulator will also disclose relevant documents and research materials from the rate review and administrative appeal procedures, except for confidential information protected by law. Brazil's Federal Court of Accounts will be invited to oversee the rate review, and the securities regulator will also receive relevant information concerning NTS disclosures.