Published 21 February 2020
Brazil is rising as a potentially large natural gas player thanks to both fate and reform. Recent "closer to shore" significant deep-water discoveries add to well-publicized offshore potential in the pre-salt area. These less logistically challenging discoveries coupled with Petrobras' increasing retrenchment along the value chain, herald the arrival of a vibrant and competitive domestic market. Increased associated offshore production will even hold the promise of opening the export market. While liberalization is still a work in progress, recent efforts to overhaul the market design and enhance competition have paved the way for further market expansion. This article details what those efforts are and why they gained momentum. The development of domestic demand beyond coastal states and in foundational sectors such as power generation, where LNG imports are to play a key role in the short to medium term, are essential for Brazil to fulfill its natural gas potential.