Govt. to develop strategic gas plan in 2004

After announcing new rules for the power sector, Brazil's government will now concentrate on developing a strategic plan for the gas market in 2004 to boost consumption in the country and use Santos Basin gas reserves, Reuters reported the mines and energy minister Dilma Rousseff as saying. The government has hired a consulting firm and is ready to reduce the participation of federal energy company Petrobas in fuel distribution and retail markets, Rousseff said. The government wants new regulations for the transport and use of natural gas, including thermoelectric power generation, press reported, citing the mines and energy ministry's gas and oil secretary Maria das Gracas Foster. Among priorities are the approval of a new gas regulation bill and negotiations with Bolivia's government over its gas exports. Foster was particularly concerned about using Brazil's 520 million cubic meters (mcm) of natural gas reserves, and the new investments needed to add another 5,000km to the country's 9,000km gas pipeline network. Foster also said that many foreign companies are approaching the ministry offering partnerships with Petrobras to explore the gas reserves, 400mcm of which were discovered this year. In November, the mines and energy ministry published a decree that created a task force with oil regulator ANP and ministry technicians to propose a regulatory framework for the use and trading of gas. The proposal is expected to be ready in September 2004. At the same time, ANP is discussing new rules for open access for gas transport, expected to be ready in February.