Brazil’s Petrobras To Retain Gas Pipeline Following Landmark CADE Reversal
(P&GJ) – In a significant reversal, Brazil’s Administrative Council for Economic Defense (CADE) has annulled previously mandated divestment orders for Petrobras. This decision allows the state-owned oil giant to keep five oil refineries and the Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) gas pipeline operator, which it had been ordered to sell under a 2019 agreement intended to address its market dominance.
After successful renegotiations, Petrobras secured more favorable terms. The new deal, approved by CADE’s tribunal, includes monitoring Petrobras's oil pricing methods for the next three years and renewable energy pricing for an additional three years.
In the gas sector, while Petrobras retains its investment in TBG, it must cede operational control, with TBG appointing independent board members for impartial governance.
CADE can reopen investigations and impose penalties if Petrobras fails to comply with these terms. Current investigations into price discrimination allegations will be suspended during the monitoring period.
This agreement, the result of extensive negotiations, coincides with a leadership change at Petrobras. Magda Chambriard, newly endorsed for the presidency, is expected to focus on expanding the company’s refining operations, marking a strategic shift amid regulatory easing.
This story was originally reported by Competition Policy International.
Related News
Related News
- Trump Puts Keystone XL Pipeline Back in Discussion, Though Revival Faces Developer Resistance
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Energy Transfer Wins New York Court Ruling in $150 Million Pipeline Fraud Case
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- India’s GAIL Eyes U.S. LNG Deals Following Trump’s Policy Shift
- TC Energy Beats Q4 Profit Estimates, Driven by Mexico Pipelines' Success
- Michigan Court Backs Permits for Enbridge’s Line 5 Pipeline Tunnel Project
Comments