On July 31, 2014, the National Agency for Oil, Natural Gas and Biofuels (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis - "ANP") enacted Resolution No. 39/2014. Such Resolution establishes the bidding procedures for the concession of natural gas transportation pipelines, contemplating its operation, construction or expansion. 

The Resolution sets out several provisions for the tender protocol of each bidding round. We would like to highlight the following: (i) the requirement of proving bid bonds to the ANP; (ii) access to a technical data package for the tendered pipeline upon payment of a participation fee (please note that a confidentiality agreement may be required); (iii) the details of each bid step; and (iv) information that shall be included in the relevant tender protocol, such as:

  • the pipeline route, the points of receipt and delivery, the transportation capacity of the pipeline;
  • the forecast for the maximum annual transportation revenue;
  • the criteria for selecting the most best bid; and
  • the term of the concession and the possibility of extension.

This Resolution is the result of public hearing No. 06/14, which was held on June 27, 2014 and aimed to obtain subsidies and additional information for the draft resolution. Various comments and suggestions were made both by the oil and gas industry and by individuals, some of which were accepted by the ANP. 

For your convenience, please find the official text of such resolution here.

So far, ANP has not published the draft tender protocol for the gas transportation pipeline Itabora?-Guapimirim, which will be the first gas pipeline to be awarded under the concession regime in Brazil. The ANP is also expected to disclose the final tender protocol for the public call for contracting the pipeline's transportation capacity, whose public hearing was held on July 15, 2014.