Minem bets on alternative routes to PPPs to massify natural gas

This Wednesday, the Director General of Hydrocarbons of the Ministry of Energy and Mines, Erick García, pointed out that Within the framework of the natural gas massification program, the current Public Private Associations (PPP) schemes could not be implemented for some regionsTherefore, your portfolio already has other alternative mechanisms to bring gas to these corners.

García stated in the presentation of the report on the Natural Gas Sector in Peru by Promigas and Quavii that Minem has already established other mechanisms, which will also be reported to the recently created Multisectoral Commission.

“We have changed some rules, we are going to change another one soon that will make that viable. It is something that is being merited in the Ministry and we are also going to report it to the commission, but the objective is clear: to bring natural gas to the regions with other schemes where the State has to have a little more active participation, because the cities and regions do not have the same settings. We have to adapt the schemes to each reality and that is what is being done and the commitment is to achieve the massification of natural gas for the whole country ”, he noted.

This announcement is in line with what was expressed a few days ago by the president Pedro Castillor on the development of the infrastructure for the massification of natural gas in eight regions: Cusco, Puno, Apurímac, Arequipa, Moquegua, Tacna, Ayacucho and Ucayali.

New organic hydrocarbon law

On the other hand, Erick García pointed out that the Minem already has in its portfolio a new organic hydrocarbon law, which is important because “not only to boost investments but also to bring the benefits of the oil industry to the populations.” Once agreed between various ministries, it will be presented to Congress.

“The aspect of closing gaps is prioritized in our law,” he added, not without first recalling that they will also update the qualification regulations for contractor companies as well as the exploration and exploitation regulations, which, together with the new organic hydrocarbon law , they would come out no later than this year.

He also recalled that his portfolio has already modified some regulations to allow the commercialization of LNG, as well as the implementation of LNG projects to massify natural gas in sectors such as mining, industry and interprovincial transport of cargo and passengers.

“This is going to boost the economy. To date, we have been making several regulatory changes that give clear signals to investors of what the established energy policy is, which is the massification of natural gas (…) We have some goals already committed to reducing the import of fuels that we do not have, such as the LPG or diesel, reduce them and also increase local production, reach a balance of not having to import and consume what we have, “he clarified.

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