Brazil introduces regulatory framework for petroleum products and natural gas

​On September 24, 2021, the Brazilian Agency for Petroleum, Natural Gas and Biofuels (ANP) published Resolution No. 852/2021, establishing a new regulatory framework for producing petroleum products and natural gas, as well as covering storage, sale and third-party services. The new resolution includes oil refining, gasoline and diesel formulation, natural gas processing and petrochemical production within the scope of petroleum products, all of which it regulates.

The new regulatory framework took effect on October 1, 2021. Certain provisions included in the new regulation are highlighted below:

Facility construction and operations

The ANP exempts companies that build new facilities (or modify existing ones) for petroleum products and natural gas production. However, before new facilities are constructed, interested parties must formally notify the ANP, sending basic information on the projects involved.

Authorization from the ANP is required to operate production facilities. Interested parties may request authorization by sending the ANP a series of documents listed in the regulations, including engineering documents, corporate documents and environmental licenses.

It is also possible for holders to transfer this authorization to other interested parties. However, the latter’s authorization request must include a plan for the transition and the production facility’s continued operation.

Sales

As per the new resolution, oil refiners, natural gas processors, petrochemical producers, gasoline and diesel formulators must sell their products to a specific list of agents.

However, the resolution does permit petroleum product producers to sell diesel A, gasoline A, natural gas and asphalt direct to final consumers.

Services

The new resolution permits producers of petroleum products to provide storage services at their production facilities to other ANP-regulated agents in a non-discriminatory manner. Producers may also contract this type of service with other agents. If producers of petroleum products intend for their facilities to operate as waterway terminals, they must observe the rules set forth in ANP Ordinance No. 251/2000, which specifically covers this subject.

The ANP expressly authorizes producers to non-discriminately provide oil refining and natural gas processing services to third parties within the new regulatory limits. Gasoline and diesel formulation services may also be provided to other formulators, refiners or petrochemical plants.

The ANP has also granted authorized oil refiners, natural gas processors and petrochemical centers that produce natural gas and petroleum products the right to carry out formulation activities for fuel and solvent production in their facilities.

Transitional provisions

Interested parties that filed an authorization application with the ANP before the new resolution was published — based on the provisions of the repealed regulations — now have 90 days to comply with the new provisions. Failure to do so within this timeframe will result in the application being shelved.

Petrochemical plants that received authorization under the terms of ANP Ordinance No. 84/2001 and ANP Ordinance No. 317/2001 must also adapt to the new regulation’s provisions before their authorization to produce petroleum products and natural gas will be renewed. Notice of renewed authorization will be published in Brazil’s Official Federal Gazette.

Previously existing authorizations published under the terms of ANP Resolution No. 16/2010 concerning assigned storage space and fuel handling in oil refineries will be canceled once the corresponding contracts expire.

Regulatory obligations

Producers of petroleum products and natural gas remain bound to observe the following regulations, where applicable:

• ANP Resolution No. 44/2009 (incident reporting);
• ANP Resolution No. 53/2015 (supply notices);
• ANP Resolution No. 45/2013 (average weekly gasoline and diesel stocks);
• ANP Resolution No. 5/2015 (average weekly LPG stocks);
• ANP Resolution No. 6/2015 (average weekly aviation kerosene stocks);
• ANP Ordinance No. 297/2001 (fuel sale data);
• ANP Resolution No. 795/2019 (price data related to the sale of petroleum products); and
• ANP Resolution No. 5/2014 (Operational Safety Management System).

Repealed regulations

The following regulations have been fully repealed:

• ANP Ordinance No. 84/2001;
• ANP Ordinance No. 317/2001;
• ANP Resolution No. 16/2010;
• ANP Resolution No. 17/2010;
• ANP Resolution No. 29/2011;
• ANP Resolution No. 30/2011;
• ANP Resolution No. 34/2011;
• ANP Resolution No. 35/2011;
• ANP Resolution No. 5/2012;
• ANP Resolution No. 48/2014;
• ANP Resolution No. 49/2014.

For further information, please contact Mattos Filho’s Infrastructure & Energy practice area.

*The summary of this article is available in French, Japanese and Italian at this link.