A review of Brazilian natural gas industry: Challenges and strategies

The aim of this paper is to present the main challenges for the development of the natural gas industry in the Brazilian state of Espírito Santo; in so doing, the paper identifies the strategies that are currently employed by industry players to encourage the use of this resource and to thus diversify the state's energy matrix. For these purposes, the following methodology was adopted: (i) analyzing bibliographic references that address the issues of infrastructure industry, regulation and the natural gas industry in Brazil - including in the Brazilian states; and (ii) employing secondary data from governmental and regulatory institutions to demonstrate the evolution of this industry in recent years in Brazil and particularly in Espírito Santo. The study concludes that, although there are challenges in expanding the gas transportation (carrier) and distribution segments ("natural monopolies") and the formation of a "consumption-anchor" for natural gas, the present is the right time to use public policies to encourage the use of natural gas and renewable sources for technological, environmental and energy security reasons.