Oil, Natural Gas and Biofuels – Edition 41
Highlights – March News
March 17, 2023
Ministry of Mines and Energy creates a working group for the program ‘Gas to Employ’
During the first meeting of the National Council for Energy Policy (CNPE), the Minister of Mines and Energy, Alexandre Silveira, created the Working Group of the Gas to Employ Program (GT-GE) with the objective of increasing the supply of natural gas in the domestic market and improving the use, as well as social and economic return of national production. President Lula also reinforced the need to develop actions to stimulate natural gas. The GT-GE will study measures such as the implementation of the exchange of Union oil for natural gas, the development of a long-term pricing policy for Union natural gas and other measures to encourage the construction of infrastructure for the flow, processing and transport of natural gas.
March 17, 2023
The National Energy Policy will have a new direction for refining, as determined by CNPE
The National Energy Policy Council (CNPE) revoked CNPE Resolution No. 9/2019, which established guidelines for the divestment process of refining assets in Brazil, aiming to expand the production of petroleum products in the country and ensuring national supply. The new decision aims to increase the operational efficiency of refineries, including reducing fixed costs and increasing the production of derivatives. In addition, the CNPE sees investment opportunities in modernization and expansion of refineries to ensure the protection of the interests of the Brazilian consumer regarding price, quality and supply of fuels. The new decision of the CNPE is anchored in the objectives of the National Energy Policy to preserve the national interest and ensure the supply of derivatives throughout the national territory.
March 29, 2023
ANP will establish technical criteria for the definition of transport pipelines
ANP included an action in its Regulatory Agenda to establish technical criteria to define transportation pipelines, as required by Law No. 14,134/2021. The measure is important to avoid conflicts between different federal entities and bills in progress in the states involving the classification of distribution pipelines. ANP plans to interact with the regulated market and society to elaborate the regulation and make available a draft of the resolution for public consultation in 2023. The new regulation is expected to be published in mid-2024.
March 30, 2023
ANP revises resolution that limits the storage services provided by producers of derivatives, and precautionarily suspends some of its articles
ANP approved a prior consultation to review articles 26 and 42 of ANP Resolution No. 852/2021, which regulates the production activity of petroleum and natural gas derivatives. The objective is to evaluate the impacts of the resolution on the market and society since its validity. Article 42 has been suspended and Article 26 will have its wording amended to allow producers of derivatives to provide storage service for products produced in other facilities. During the review, ANP will evaluate whether this change will be maintained. The suspension and the new wording allow the renewal of the current storage contracts and the isonomy to the entire market, while ANP decides whether the changes will remain definitively or not.
Laws and Regulations – March News
March 17, 2023
Approved by the CNPE, resolution restores the blend of 12% of biodiesel into the diesel in april
The CNPE approved the increase of the biodiesel blend in diesel to 12% from April this year. The Resolution No. 3/2023 also sets out a gradual increase to 13 percent in 2024, 14 percent in 2025 and 15 percent in 2026.
March 23, 2023
Precautionary measures related to fuel supply are revoked by ANP
ANP revoked the preventive measures to ensure fuel supply that were taken in November 2022 due to riots and roadblocks. Resolution No. 919/2023 enters into force on May 2, 2023, and gives time to economic agents to reinstate obligations before that date. ANP understood that the conditions that led to the publication of the measures have already ceased and that there are no risks, at the moment, to the national fuel supply.
March 29, 2023
ANP approved amendment of resolution in order to address the reduction of cbio acquisition targets by distributors under the renovabio program
The ANP board of directors approved an amendment to ANP Resolution No. 791/2019 that includes provisions to address the reduction of individual targets of fuel distributors, in accordance with CNPE Resolution No. 08/2020. The amendment provides conditions and a system for the reduction of the individual annual targets of fuel distributors purchasing biofuels through supply contracts with biofuel producers holding the Certificate of Efficient Production of Biofuels issued under RenovaBio. The main changes of ANP Resolution No. 791/2019 include setting minimum contractual deadlines, multiplication of the volume of biofuel contracted and withdrawn by the CBIO emission factor corresponding to each biofuel producing unit, limitation of the reduction of the distributor’s individual target to 20% and annual calculation of compliance with the contract. The changes encourage long-term contracts with biofuel producers with a higher Energy-Environmental Efficiency Score, expansion of the production and use of biofuels and increased predictability of the CBIO market.
Public Participation | Public Consultations and Public Hearings – March News
March 23, 2023
ANP – Previous Consultation No. 01/2023
Subject: Obtain subsidies on the draft resolution that will regulate authorizations for the packaging activity and logistical operations for the movement of liquefied natural gas – LNG in bulk by alternative modes to the pipeline.
Contribution Period: from January 26, 2023 to April 12, 2023 (extended).
March 30, 2023
ANP – Previous Consultation No. 01/2023
Subject: Obtain contributions to the process of regulating negotiated and non-discriminatory access of interested third parties to runoff production pipelines, natural gas treatment or processing facilities and LNG terminals, as referred to in Article 28 of Law No. 14,134, of April 8, 2021.
Contribution Period: from January 31, 2023 to April 19, 2023 (extended).