Sao Paulo Official: Fed Govt Needs NatGas Contingency Plan

Brazil's federal government needs to accelerate the preparation of a natural gas contingency plan in order to guarantee supply in coming years, Dilma Pena, Sao Paulo state energy and water resources secretary, told newspaper Valor Economico in an interview.

The federal government needs to guarantee supply to Sao Paulo industries that have invested in gas-fired equipment in recent years, she said.

Doubts about supply come as the country's economy has started growing faster than expected at around 4.8% a year, which could mean the government may give priority to supplying gas to thermo plants.

Pena is a member of the federal energy planning council CNPE, where discussions over a contingency plan started a few months ago but have not yet concluded.

State industries and businesses also are concerned gas supplies might not meet their needs because there is no clear legislation for the gas sector, said Pena.

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