ANP Advances Gas Transportation Tariff Review

General Context

The Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) continues to advance the review of the regulatory framework applicable to natural gas transportation tariffs. According to the Agency, due to the complexity of the matter, the tariff review for the 2026–2030 regulatory cycle has been structured in three phases.

As part of the first phase, now concluded, ANP issued Resolution No. 991/2026 (RANP 991/2026), which introduces relevant updates to the regulatory framework governing the tariff review process for natural gas transportation.

Subsequently, within the scope of the second phase, ANP conducted Public Consultation No. 03/2026, which closed on April 3, 2026. The consultation aimed to gather stakeholder input on the methodology and valuation of the Regulatory Asset Base (BRA), as well as on the investment plans of natural gas transportation companies.

The third phase of the tariff review, scheduled for May 2026, will define the Maximum Allowed Revenue (RMP) and the tariff proposals applicable to the cycle.

Resolution No. 991/2026 – New Tariff Model

RANP 991/2026 consolidates a tariff model based on the Maximum Allowed Revenue (RMP), under which ANP sets the revenue cap that each transportation company may recover through transportation tariffs.

The RMP will be adjusted annually, preferably in line with the IPCA inflation index, and is composed of:

1. Return on invested capital – calculated by applying the WACC to the BRA;
2. Investment recovery; and
3. Operating costs – considered by the ANP under the criterion of economic efficiency.

The regulation of methodologies for valuing the Regulatory Asset Base (BRA) is another key feature of the new resolution. In this regard, the rule innovates by allowing alternative valuation methodologies, such as the Recovered Capital Method (RCM), inspired by international regulatory practices, which seeks to estimate how much of the invested capital has already been recovered over time.

Additionally, the incorporation of new investments into the BRA now depends on proof of costs actually incurred and compliance with efficiency criteria to be defined during the rate review process.

Resolution No. 991/2026 also formalizes the operation of the Regulatory Account, a mechanism designed to record differences between:

• the revenue projected by the ANP; and
• the revenue actually earned by the transporters.

The new regulation establishes that funds accumulated in the Regulatory Account must be allocated primarily to tariff moderation and may also be used to mitigate congestion in the transmission network, provided that capacity constraints are demonstrated.

Another innovation introduced by RANP 991/2026 is Factor X, a regulatory mechanism designed to incentivize operational efficiency gains. The methodological details of the calculation and application of Factor X are to be developed in the third phase of the tariff review process.

Public Consultation on the Valuation of the Regulatory Asset Base

On February 27, 2026, as part of the second phase of the tariff review, ANP approved the opening of Public Consultation No. 03/2026, with the purpose of obtaining contributions regarding the Agency’s regulatory determinations on:

• the valuation of the BRA;
• investment plans (CAPEX); and
• operating costs (OPEX) of transportation companies within the 2026–2030 tariff cycle.

The public consultation was marked by ANP’s proposal of significant write-downs in the BRA and CAPEX values proposed by the transportation companies.

ANP adopted the Replacement Cost New (CRN) methodology for assets with long useful lives or lacking reliable historical data, while also:

• excluding assets with expired regulatory useful life, in order to prevent double remuneration;
• rejecting minimum residual value assumptions for fully depreciated assets;
• adjusting depreciation parameters, with regulatory standardization (e.g., a 30-year useful life for pipelines);
• conditioning CAPEX recognition on documentary evidence and compliance with efficiency criteria; and
• reinforcing the need for proper cost allocation and segregation to mitigate cross-subsidization risks.

ANP also indicated that constant OPEX projections throughout the tariff cycle will not be accepted, as they are inconsistent with an incentive-based regulatory model, which assumes efficiency gains captured through the Factor X, to be defined in the third phase.

Next Steps

The issuance of Resolution No. 991/2026 represents a significant milestone in the regulatory framework applicable to the natural gas transportation sector.

The tariff review process, however, remains ongoing. The third phase, scheduled for May 2026, will focus on defining the Maximum Allowed Revenue (RMP) and the tariff proposals for the 2026-2030 cycle. This phase will be critical for consolidating ANP’s position regarding the recognition of investments made by transportation companies and the valuation of the Regulatory Asset Base (BRA) – which remains the central point of contention in the process – with direct impacts on tariff levels and the competitive dynamics of the sector.

CMA’s Energy and Natural Resources Team is available to provide further clarification on this matter.