The end of the concession
Posted: Thu Feb 20, 2025 6:20 am
Another important impact caused by the law is the increase in job creation in the country and the space for greater investments. According to estimates projected by EPE, the new regulatory framework should generate investments between R$50 and R$60 billion, with natural gas production tripling by 2030. According to the National Confederation of Industries (CNI) , with the ratification of the law, approximately four million jobs will be created in the next 10 years, with an increase of 0.5% to the GDP.
One of the most significant changes in the new legislation is the change in the concession system for authorization. The concession model, which was in force until then, operated through competition. This means that, through bidding processes, interested companies presented themselves and had to prove the minimum qualification requirements set out in the notice. The company chosen, based on criteria that considered aspects such as techniques and prices, formalized the process by signing an administrative contract, which had a fixed term.
The authorization regime does not have specific rules and, therefore, there is no obligation to bid or sign an administrative contract. In other words, now, the activity of transporting natural gas, whether for chile mobile database the construction, expansion, operation or maintenance of facilities, will occur with authorization from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) .
The new rules also determine that, if there is more than one interested company, it will be up to the ANP to conduct the public selection process. Furthermore, according to the text of the new law, the authorizations will not have a defined validity period and may be revoked, upon request by the organization, in cases of bankruptcy or serious non-compliance with obligations, if the gas pipeline is deactivated and if the company interferes or suffers any type of interference from other agents in the gas industry.
The expectation is that the regulatory agency will be able to monitor the natural gas market and foster competitiveness in the sector, making it more transparent. In addition, the change in legislation is expected to increase the supply of natural gas in the country and, therefore, boost the growth of the sector.
One of the most significant changes in the new legislation is the change in the concession system for authorization. The concession model, which was in force until then, operated through competition. This means that, through bidding processes, interested companies presented themselves and had to prove the minimum qualification requirements set out in the notice. The company chosen, based on criteria that considered aspects such as techniques and prices, formalized the process by signing an administrative contract, which had a fixed term.
The authorization regime does not have specific rules and, therefore, there is no obligation to bid or sign an administrative contract. In other words, now, the activity of transporting natural gas, whether for chile mobile database the construction, expansion, operation or maintenance of facilities, will occur with authorization from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) .
The new rules also determine that, if there is more than one interested company, it will be up to the ANP to conduct the public selection process. Furthermore, according to the text of the new law, the authorizations will not have a defined validity period and may be revoked, upon request by the organization, in cases of bankruptcy or serious non-compliance with obligations, if the gas pipeline is deactivated and if the company interferes or suffers any type of interference from other agents in the gas industry.
The expectation is that the regulatory agency will be able to monitor the natural gas market and foster competitiveness in the sector, making it more transparent. In addition, the change in legislation is expected to increase the supply of natural gas in the country and, therefore, boost the growth of the sector.