Research Overview

Brazil’s natural gas market is in the midst of profound transformation driven by recent changes in market design and the promulgation of a new regulatory framework. Although regulatory gaps and uncertainties about how the market will develop persist, national and international players are cautiously initiating strategic moves to take advantage of the untapped potential in gas reserves and end-user demand. The retreat of Petrobras, the national oil company, from a series of businesses across the gas value chain, puts an end to its monopoly. This is expected to attract new investment and players, create a supply shock, and stimulate demand and investment across gas infrastructure, industries, and thermal generation, creating a virtuous cycle for Brazil’s development. The country’s gas business potential is enormous, though its market peculiarities should be carefully assessed to identify growth areas. This study looks at the transformation of the gas landscape and identifies the key trends shaping the coming decade. It also highlights business opportunities for participants to consider when designing their growth strategies to stay relevant and agile in the market.