Brazil's Lower House close to vote end of Petrobras virtual monopoly in gas industry

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Brazil's lower house is set to vote on Tuesday to pass a bill that can further open up the natural gas market to private investors by breaking the monopoly held by state-controlled oil company Petroleo Brasileiro SA (Petrobras)SA|.

BRASILIA - Brazil’s lower house is set to vote on Tuesday to pass a bill that can further open up the natural gas market to private investors by breaking the monopoly held by state-controlled oil company Petroleo Brasileiro SA SA>.

Oliveira said he expects the bill to be approved without changes in the Lower House. The bill would still need to be sent to the Senate for approval. The reduction of Petrobras’s control over the industry now depends on passage of legislation to allow more private companies enter the sector. Last week, Petrobras and Golar Power chiefs criticized in two separate webinars last-minute attempts to change the proposal that would be presented in the House. Petrobras CEO Roberto Castello Branco said there were private groups interested in building pipelines subsidized by governments.The bill would also open competition by changing the structure of the gas sector so producers cannot be distributors and vice-versa, Oliveira said.

 

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