Congress about to postpone the massification of gas for another year

Congress has taken so long to pass the Law 679sent in November 2021 for the massification of natural gas, which the international fuel crisis reached FISE and today its resources are below 50% by 2023, which makes it impossible to enable it to start the construction of pipelines this year in the whole country.

The General Directorate of Hydrocarbons (DGH) warns that this fall from S/1,800 to S/860 million of the fund directly affects the 3 out of 10 Peruvian households that in the last three years cooked with firewood, and the more than 5 million 143,177 from sectors C, D and E who today cook with LPG cylinders dear.

How is the situation of home gas in Peru today? Currently, there are 1,806,867 connected users, of which 86% correspond to Lima, according to figures from Cálidda. The problem is that there is still a gap of 50% in the 10 regions that have gas, and 100% in the 14 regions without access to it.

FISE was created precisely to focus on households with energy gaps. Either with vouchers to buy LPG, low electricity bills or vehicle conversions to GNV, in addition to subsidizing the entry of natural gas into homes. Everything directly.

“What it has not been doing, because the law prevents it, is building infrastructure, such as pipelines or high-level facilities. Law 679 is crucial to change this reality”, specifies Carlo De Los Santos, general director of the DGH.

They are S / 491 million, through Con Punche Peru, which could be injected to replenish the fund, in addition to contributions from regional governments.

In addition, a figure similar to that of the electricity market is added, with a cross subsidy that slightly increases gas rates in Lima to drastically reduce those of the regions. If you raise 10 cents to the one that has 95% of total users, you can generate a 2% or 3% drop for everyone else, explains De Los Santos.

“Who are in the possibility of being cared for? Ucayali, with 17,000 homes; Ayacucho, with 15,000; Cusco, with 29,000; and Junín, Huancavelica, Apurímac and Puno, with 51,000 as a whole. All of that can be spoiled, ”he laments.

mixed interests

Not everyone is convinced to put social profitability before economic one. Industry sources explain that a single rate represents, in practice, a loss of money for some players. If in Lima it goes up a little so that in the province it goes down much more, who is affected? Whoever stops charging that difference in the province is affected, which can reach 70% of the final price in some concessions. Part of the resistance in Congress is due to this, they warn.

“For this reason, there are many geographical concessionaires, such as Lima Gas, EGP, Gasbel or Clean Energy, that are bursting, because the high-profit business is going to fall, now it will be a win for everyone,” says the source.

But this ‘flat’ rate is necessary, not only to bring energy to more homes, but also to industrialize the country (anchor demand) and prevent capital from fleeing between regions looking for a better gas price. With this, in addition, he is honored with a campaign promise related to all the benches, today indifferent to the mass in Congress.

Massification impossible without consensus

The Ministry of Energy and Mines (Minem) reported that the resources of the FISE they fell in 2022 because, given the rise in gasoline, the budget allocated for conversions to CNG increased fivefold, in addition to raising electricity subsidies.

The DGH warns that, without Law 679, connections to homes, businesses and common pots will drop 50% this year compared to 2022 (currently, there are 1 million 115,907 thanks to FISE). conversions to CNG will fall 40%.

In 2022, unsuccessful efforts were made to specially entrust the massification to Petroperú and Fonafe electric companies.

The word

Oscar Vera Gargurevich. Minister of Energy and Mines

“Within our plan this year is to start for the southern zone, the so-called 7 regions that involves Puno, Cusco, Arequipa. Moquegua, Junín, Ucayali and Ayacucho”.

The numbers

• 50% monthly savings can generate a natural gas connection at home.
• Today, a 10-kilo LPG cylinder costs S/65, according to Osinergmin.