# Petrobras Warns Forced Gas Sales Could Hurt Investment as Regulator Delays Hearing *Oil company welcomes the postponement of a regulatory hearing until November 19, arguing that mandatory gas auctions could discourage new supply.* - Published: 2026-10-20 - Section: Insights - URL: https://brazilstockguide.com/insights/petrobras-warns-forced-gas-sales-could-hurt-investment-as-regulator-delays-hearing/ ![Natural gas, infrastructure](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/12/Natural-gas-infrastructure.jpg?fit=1024%2C683&ssl=1) **By Brazil Stock Guide —** Petrobras welcomed a decision by Brazil’s oil and gas regulator to postpone a public hearing on proposed mandatory natural gas sales, warning that the measure could undermine investment incentives and ultimately keep energy prices elevated. The National Agency of Petroleum, Natural Gas and Biofuels (ANP) said Tuesday (October 20) that the hearing on its proposed Gas Release Program had been rescheduled from October 21 to November 19. The postponement was approved unanimously by the regulator’s board, giving market participants additional time to prepare their arguments. The proposed program aims to reduce concentration in Brazil’s natural gas market by requiring Petrobras to sell part of its gas portfolio through auctions to other market participants. Under the draft rules, the regulator would determine the volumes, duration and initial minimum prices of the mandatory sales. Buyers could acquire the gas for their own use or resell it, potentially creating additional competition in the wholesale market. Petrobras, however, questions whether the mechanism would produce lasting benefits. In a statement released Tuesday, the company argued that forcing it to auction existing gas volumes could weaken the predictability needed to justify investments in production, imports and infrastructure. Rather than encouraging new supply, the measure could simply redistribute gas already available in the market, with potentially temporary effects on competition. The dispute highlights a broader challenge facing Brazil’s energy sector: how to reduce the market power of an established producer while preserving incentives for companies to invest in additional supply. For the ANP, the Gas Release Program is intended to encourage competition in a market historically characterized by high concentration. Petrobras maintains that the proposed intervention risks producing the opposite of its intended outcome, with less investment and continued pressure on prices over the medium and long term. The regulatory proposal has attracted considerable industry attention. A public consultation conducted between August 14 and September 28 generated 655 contributions from market participants and other stakeholders. According to the ANP, submissions reflected broad support for increasing competition, although participants differed over the program’s scope, auction mechanisms and safeguards for investment and existing contracts. Petrobras submitted its own recommendations during the consultation in September. The company said the additional time before the hearing would allow regulators to better assess the short-, medium- and long-term consequences of the proposal without disrupting the remaining regulatory timetable. The November 19 hearing will not itself constitute final approval of the program. The ANP will still need to evaluate the arguments presented and determine whether changes to the proposed rules are warranted. At stake is more than the redistribution of existing natural gas supplies. The regulator must determine whether compulsory sales can create sustainable competition and ultimately lower costs for consumers without weakening the investment incentives needed to expand Brazil’s gas market. --- Source: Brazil Stock Guide, https://brazilstockguide.com/insights/petrobras-warns-forced-gas-sales-could-hurt-investment-as-regulator-delays-hearing/