ANP published the resolution related to the production of petroleum and natural gas by-products
On September 24th, 2021, the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) published the Resolution nº 852/2021, that will reformulate the production of petroleum and natural gas by-products regulation, as well as their storage, commercialization and rendering of related services.
The new rule will become effective on October 1st, 2021 and will unify the regulatory framework for the production of oil and gas by-products, consolidating the regulation about the activities of oil refinery, natural gas processing, gasoline and diesel formulation, and fuel production in petrochemical centrals. The Resolution revokes 11 normative acts and simplifies several regulatory proceedings regarding such activities.
For the New Gas Market it represents the evolution of the regulation for non-discriminatory third-party access to natural gas processing facilities (UPGNs), aligned with the New Gas Law provisions.
Please find below the main new aspects brought by the Resolution, highlighted by the Oil, Gas & Offshore team:
Dismissal of construction authorization: the proceeding for construction of new production facilities or for changes in an existing facility was simplified, with the dismissal of the ANP construction authorization. Owners of new facilities or of those that will be changed shall request the corresponding ANP authorization only for the operational phase, making the regulatory proceeding faster.
Operating authorization: for the request of an operating authorization for a production facility, the interested party shall provide the documentation required under articles 6 to 9 of the Resolution, observing the tests and inspection procedures under its articles 10 to 12. The following cases will be subject to the operating authorization:
- construction of a new production facility of petroleum and natural gas by-products;
- physical changes in a production facility or in its units;
- increase of capacity in a production facility or in its units due to improvements, without additional equipment; and
- transfer of ownership of the operating authorization.
Service contractor: the Resolution created the service contractor role. Interested parties must be previously registered within ANP, by presentation of (i) registration form (draft to be provided in the ANP website); and (ii) applicable corporate documents, varying according to corporate structure.
Direct commercialization to the final consumer: the petroleum and natural gas producer may commercialize the derivative products directly to the final consumer, subject to the conditions of articles 21 and 25 of the Resolution. The Resolution established the same rule for contractors of services, which are treated equally to petroleum refiners or gas processing entities and are allowed to commercialize the by-products to the agents described in articles 20 and 21 of the Resolution.
Rendering of services: the Resolution allows rendering of the following services for oil and natural gas by-products producers, in a non-discriminatory basis:
- storage of the by-products in the refinery or processing facilities in favor of another agent regulated by ANP, and the possibility of hiring such services from another regulated agent;
- oil refinement services to be hired by another refiner, petrochemical plant or service contractor registered within ANP; and
- natural gas processing to be contracted by another processing entity, petrochemical center or service contractor registered within ANP.
Only oil and natural gas producing companies in Brazil or gas traders duly authorized by ANP will be allowed to have the registration as service contractor of oil refinement or gas processing toward the Agency.
The service contractor will have joint liability with the petroleum and natural gas producer in guaranteeing the specification of by-products to be commercialized in all national territory, in the specifications set by the relevant regulation.
Transfer of ownership: the Resolution establishes in the article 9 the provisions for transfer of ownership over the authorization to operate the production facility, providing clarity to the new market agents within the scope of Petrobras divestment.
The Resolution nº 852/2021 is available here, in Portuguese.
The Oil, Gas & Offshore team is available in case of doubts.