IBP - Brazilian Petroleum, Gas and Biofuels Institute

The Brazilian Petroleum, Gas and Biofuels Institute (IBP) actively participates in all regulatory processes related to the natural gas market in Rio de Janeiro, including those concerning discussions on the renewal of the CEG and CEG Rio concessions, which are part of the agenda for Agenersa’s Regulatory Session scheduled for tomorrow. This is a strategic issue for the future of natural gas distribution in the state of Rio de Janeiro and for the development of the gas market as a whole.

In this regard, IBP believes that the matter must be conducted with the utmost attention to the principles of transparency, public participation, legal certainty, and predictability, with a focus on energy security and the credibility of the regulatory environment. Only under these conditions can the legitimacy of the process be ensured.

The Government of the State of Rio de Janeiro has been assessing the possibility of renewing the concessions, and IBP understands that this is an important opportunity to modernize the contracts, aligning them with Brazil’s new natural gas legal framework, ongoing market transformations, and regulatory best practices. Discussions regarding the renewal of the concessions may represent a concrete opportunity to generate economic benefits for the state, provided that the process is conducted in a transparent, technical, and legally sound manner.

Against this backdrop, IBP reinforces the importance of conducting an administrative process that ensures transparency, access to information, and broad social and institutional participation at every stage. Any decision regarding the natural gas distribution concessions must therefore be preceded by meaningful public discussions, with full access to the technical, economic, and contractual information supporting such decisions.

It is clear that the participation of market stakeholders—including producers, consumers, and other interested parties—as well as access to all relevant documents and information concerning the renewal process, is essential to improving proposals, enhancing the legitimacy of the process, and reducing future litigation risks.

IBP also highlights the importance of legal certainty, particularly given that the Rio de Janeiro State Court of Accounts (TCE-RJ) is currently assessing the legality of the renewal process.

In light of this scenario of uncertainty, the Institute believes that any definitive decision must strictly comply with the applicable legal and regulatory framework, while jointly evaluating CEG’s and CEG Rio’s technical capacity to continue operating the concessions and determining whether renewal or a new competitive bidding process would be the most suitable option for the gas market. Such an assessment requires caution in all potential courses of action in order to avoid uncertainties that could jeopardize investments, contracts, and the overall stability of the state’s gas market.

In formal submissions already presented to Agenersa and the State Government, IBP emphasized that any decision regarding the future of the concessions must be based on updated information, comprehensive investment plans consistent with current market realities, and compliance with the guidelines established under Law No. 14,134/2021 (the New Gas Law). Furthermore, it is essential that the process contributes to building a more predictable and competitive regulatory environment aligned with the objectives of opening and further developing Brazil’s natural gas market.

While reaffirming that any decision regarding the renewal or rebidding of the CEG and CEG Rio concessions must be guided by the public interest, transparency, and full compliance with the law—while also promoting open and constructive dialogue with society—IBP reiterates its willingness to contribute technical expertise to the discussion, reinforcing its commitment to strengthening the natural gas market, promoting legal certainty, and supporting the sustainable development of the State of Rio de Janeiro.