Petróleo Brasileiro SA (Petrobras) said on Monday it will allow prices indexed to Henry Hub to be used in the sale of natural gas to distributors.

The move is part of an ongoing gas market reform spurred by new legislation opening the midstream and downstream segments to new players.

Inspired by the “prospect of a more competitive environment,” Petrobras said it “seeks to offer products and solutions with greater competitiveness to maximize the company’s results.”

The gas reform was signed into law by President Jair Bolsonaro in March. The pillars of the reform are third-party access to market participants on pipelines; an entry-exit transport regime; transparency on the pipeline system; and unbundling laws so that gas network operators cannot be controlled by...