TRF-1 Grants Favorable Injunction to 'Gas King' Against Âmbar Energia

In a significant legal development, the Federal Regional Court of the 1st Region (TRF-1) has issued a favorable injunction to the so-called 'Gas King' in a dispute with Âmbar Energia, a subsidiary of the J&F group. This decision, made by Judge Ney Bello during the final hours of judicial duty, effectively halts the planned acquisition of thirteen thermoelectric plants from Eletrobras by Âmbar Energia.

The ruling, delivered just before the judicial recess concluded, came late on January 5, 2025. It annuls the conversion of energy purchase agreements between Eletrobras and Âmbar into capacity reserve contracts (CER), a crucial step in transferring control of the power plants, twelve of which are located in the Amazon region. The deal in question is valued at approximately R$ 4.7 billion.

This legal action stems from a lawsuit filed by the Companhia de Gás do Amazonas (Cigás), a government-controlled gas distributor, along with Termogás, owned by businessman Carlos Suarez. Known for his substantial influence in Brazil's energy sector and Congress, Suarez was previously associated with the construction firm OAS, which faced significant repercussions from the Lava Jato investigation.

In his ruling, Judge Bello responded to a petition filed by former President Michel Temer, who is representing Cigás in this case. The injunction mandates that any conversion of contracts to CER must receive prior approval from Cigás. In the petition submitted on January 3, Temer raised concerns that such a conversion would lead to severe and irreversible damages, both financially and institutionally, potentially jeopardizing local gas supply services.

The recent injunction reverses a prior decision made by Judge Jaiza Fraxe of the 1st Federal Court of Amazonas, who had excluded Cigás from the legal proceedings. Following the end of the judicial recess, the TRF-1's leadership will now review the merits of the case and other incidental issues arising from the decisions made during the judicial duty period.

This development marks a critical juncture in Brazil's energy sector, particularly concerning the ongoing negotiations and regulatory frameworks surrounding gas distribution and energy resources in the Amazon.