On September 1, Brazil's House of Representatives approved the basic text of the New Gas Law (PL 6407/13), which should generate more investments in infrastructure and stimulate competition in the Brazilian Natural Gas Industry. This will benefit all consumers, including industries, power generation companies and end consumers. It is expected that the creation of a competitive market - connected through an integrated transport network - may result in a reduction in the cost of natural gas, increasing the competitiveness of the industry in the domestic and international markets.

Another consequence of the entry of new agents in the market is expected to be the increase in tax revenues for Brazilian states, both through royalties on the greater production of national gas, as well as by enabling greater competitiveness of the country's industries, generating greater investment, income and economic growth.

The project, which was a result of joint work by the entire sector over the past few years, meets the objectives of the Novo Mercado de Gás (New Gas Market) program, ensuring that the sector has a Regulatory Framework that will provide legal certainty for the opening of the gas market and will enable new investments in the gas industry, including the transportation segment.

Now, PL 6407/13 will be submitted for approval by the Senate and, finally, by the President of the Republic.