Featured News Oil and Gas Newsletter March 2026

ARSESP establishes criteria for transferring nearly R$ 2 billion in tax credits to consumers 

On February 23, 2026, ARSESP published Resolution No. 1,176/2026, which establishes criteria and procedures for allocating to users tax credits resulting from the exclusion of ICMS from the PIS/Pasep and Cofins calculation basis, as decided by the Supreme Court in Theme 69 of General Repercussion.  

The refund, estimated at almost R$ 2 billion, will be full and widespread, exclusively through the tariff mechanism. The measure ensures that all amounts recovered by the concessionaires are allocated to tariff moderation.  

The regulation also governs the possibility of deducting costs incurred by the concessionaires in connection with judicial and administrative proceedings related to the exclusion of ICMS from the PIS/PASEP and COFINS calculation base (such as legal fees), provided that such costs are previously reviewed and approved by ARSESP. In turn, the allocation of credits will take place over 12-month cycles, without distinction between free and captive users, except for the thermoelectric segment that benefited from ICMS exemption. 

Chamber of Deputies approves Redata, without the inclusion of Natural Gas, which now awaits deliberation by the Senate. 

On February 25, 2026, the Chamber of Deputies approved Bill No. 278/2026, which establishes a set of measures aimed at stimulating the installation, expansion, and modernization of data centers in the country through a differentiated tax regime that suspends federal taxes on the purchase of machinery and equipment for data centers. The bill also establishes countermeasures, such as the requirement to use energy from clean or renewable sources, the adoption of water efficiency standards, and investments in research, development, and innovation (RD&I). 

During the vote in the Chamber of Deputies, Amendment No. 11, authored by Representative Júlio Lopes (PP-RJ), and Amendment No. 12, by Representative João Carlos Bacelar (PL-BA), which sought to include natural gas, biomethane, and nuclear energy as alternative sources to REDATA-incentivized projects, were not considered. Thus, in the text sent to the Senate, only data centers that meet their entire electricity demand through supply contracts or self-production from clean or renewable sources are eligible for tax benefits. 

The Senate vote, which was scheduled for February 26, was postponed by the President of the Senate given the need to define which sources would be considered eligible for incentives under the program. As a result, the tax incentives in Provisional Measure No. 1,318 expired and now, if the Bill No. 278/2026 is approved, would only take effect in January 2027. 

Senator Laércio Oliveira (PP-SE) presented Amendment No. 4, which proposes the inclusion of natural gas and biomethane in the list of eligible sources, allowing these energy sources to be classified as “clean energy” in the regulation. The Progressive Party leadership also requested that Amendment No. 4 be considered separately. Currently, there is no date set for the bill to be voted on in the Senate. 

CARF: interstate natural gas pipeline is entitled to a tax benefit granted by SUDENE

Transportadora Associada de Gás S.A. (“TAG”) achieved an important victory in CARF: the Council ruled that the company was entitled to a tax benefit upon the revenues obtained with the transportation of natural gas between states.

SUDENE had granted a 75% reduction in Corporate Income Tax for the activities carried out by the company in the State of Alagoas. However, the Brazilian Federal Revenue Service argued that this benefit would not apply to revenues obtained from transporting natural gas from the State of Alagoas to the State of Pernambuco. During the proceeding, the company was able to prove that all the gas transported through the pipeline during the period entered in the State of Alagoas and, therefore, was entitled to the benefit granted by SUDENE.

ANP approves and submits BRA’s proposal for gas transporters to public consultation 

On February 27, 2026, at the 1.117th ANP Board Meeting, Public Consultation No. 3/2026 was approved, which seeks to define the methodology applicable to the valuation of the Regulatory Asset Base (BRA) and determinations regarding the investment plans of natural gas transporters for the 2026-2030 Tariff Cycle. The public consultation has a 15-day contribution period, which ends on March 19, 2026. 

Board Decision No. 142/2026 approved the technical notes from the Infrastructure and Transportation Superintendence (SIM) that analyze and propose methodologies for valuing the BRA of carriers. In addition, it published all documents related to the public consultation regulatory process on the 2026-2030 Tariff Cycle. 

Among the proposals for BRA valuation, there was a cut of R$ 3.3 billion (24%) in relation to the transporters request and the options for the New Replacement Cost (CRN) and Inflation-Adjusted Historical Cost (CHCI) methods. For now, the Board has opted not to apply the Recovered Capital Method (RCM) due to a lack of technical support and information but has not ruled out applying this method after the public consultation takes place or at a later date. 

The investment amounts originally proposed by the carriers were also reduced, with only R$ 1.04 billion of the R$ 14.45 billion requested being approved. The Agency also excluded several investments from the BRA because they did not meet the criteria of prudence and necessity established in § 1 of Art. 6 of ANP Resolution No. 991/2026. According to the ANP, most of the projects presented failed to prove their eligibility because they did not provide detailed engineering studies with technical specifications, project justifications, physical and financial schedules, or complete budgets, in addition to not having Construction or Operating Authorizations. 

After defining the BRA value, the regulatory depreciation and the efficient operating costs will form the basis for calculating the Maximum Allowable Revenue (RMP) to be recovered through the transport tariff and, with that, the presentation of tariff proposals applicable to the cycle under analysis. 

Normative Instruction No. RFB 2,308/2026: new rules to the Repetro-Industrialização authorization 

On February 27, 2026, Normative Instruction No. RFB 2,308/2026 was published to introduce new rules the regulation of Repetro-Industrialização.

The new requirements include: (i)the applicant must have a CNAE code corresponding to an industrial activity permitted under the regime; and (ii) the applicant must present a contract demonstrating the obligation to manufacture the products, even if production has not yet started by the date of the authorization request. 

AGEMS updates rules for passing on gas and transportation costs in distribution tariffs 

On March 10, 2026, AGEMS published Ordinance No. 330/2026, which amends provisions of Ordinance No. 281/2024 and updates the mechanism for adjusting and recovering variations in the price of natural gas and transportation in the tariffs applied to piped gas distribution services in Mato Grosso do Sul.  

The rule revises and modernizes essential definitions for tariff calculation, such as additional transportation charges, penalties, gas prices, and the recovery portion, in addition to detailing new operational concepts, such as contracted daily quantity, scheduled daily quantity, and daily gas withdrawal quantity.  

The Ordinance also redefines the criteria for calculating the recovery portion, equivalent to the balance of the graphic account divided by the projected gas volume. For the residential, commercial, and cogeneration segments, the projection used corresponds to the following 12 months, and for the industrial segment and other users, the period considered is six months.  

Another important change is the determination that the sale price of gas passed on in tariffs must be applied equally to all users, except in cases with specific contracts and for free market consumers.  

The State of Rio de Janeiro obtains a partial victory in an administrative proceeding concerning the collection of ICMS on the delivery of profit oil under a production‑sharing contract.

The Plenary Council of the Taxpayers’ Council of the State of Rio de Janeiro ruled on the Special Appeal filed by Petrobras in an administrative proceeding related to a tax assessment of ICMS, FECP, and penalties for the failure to pay the tax and the failure to issue the ancillary document upon the delivery of profit oil to the Federal Government under the production‑sharing regime.

After the first- and second‑instance administrative decisions upheld the assessment, the Plenary Council of the Taxpayers’ Council, due to a procedural issue, did not analyze the merits of the dispute, keeping the prior unfavorable decisions against Petrobras, and only admitted the portion of the Special Appeal concerning the statute of limitations.

This material is for informational purposes only. Our Oil & Gas team is available to provide specific legal advice.