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Government proposes legal framework to accelerate gas massification

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The president of the Republic, Pedro Castillo, announced yesterday in Ayacucho the start of the massification of natural gas in “all of Peru”, starting with some regions.

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“The gas belongs to all Peruvians. For this reason, I announce the firm decision to massify gas throughout Peru. Today we start gas in Cusco, Puno, Apurímac, Arequipa, Ayacucho, Moquegua, Tacna, Ucayali and other regions ”, stated the head of state during his presentation of the balance of the first 100 days of government.

To achieve this objective, Castillo reported that the Executive submitted a bill to the Congress of the Republic. “I urge you to immediately approve the massification policy that will allow us to recover the energy resource for Peruvians,” he emphasized.

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In general terms, the objective of this legislative initiative is to give the Government a legal framework to specify the massification announcements already detailed on repeated occasions.

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The Ministry of Energy and Mines (Minem) specified that the new natural gas massification policy contemplates the development of network and pipeline infrastructure in the regions, with agile construction mechanisms and the participation of Peruvian companies.

The scope will be to the projects promoted by the Minem “for the provision of the public service of natural gas distribution through pipeline networks.” It should be noted that the current massification system is by trucks.

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Likewise, it is sought that Petroperú be in charge of executing it, but with the resources of the Social Energy Inclusion Fund (FISE) and / or the Hydrocarbon Energy Security System (SISE).

Subcontracting will be with companies that are in the registry of the Osinergmin.

It is also established that although it is a public initiative, the projects may also be promoted through mechanisms to promote private investment, as determined by the Minem.

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In addition, the Fuel Inventory Agency, made up of all the agents obliged to maintain stocks of liquid fuels, LPG and other hydrocarbons; as well as by representatives of the Minem.

Minem explained that for the development of overcrowding in regions without concessions, Fise resources will be allocated for the construction of the necessary infrastructure in two stages.

Stages of overcrowding

The first includes Ayacucho, Ucayali and Cusco, which are regions where natural gas is produced or that have transportation facilities. of fuel, where it is planned to allocate resources in the fourth quarter of the year.

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While the second stage groups the regions of Puno, Junín, Huancavelica and Apurímac, which will receive the resources in the first quarter of 2022.

Likewise, the ministry explained that in order to bring natural gas to low-income families, the BonoGas and Ahorro GNV programs will soon be expanded, and the construction of distribution networks will be promoted in Arequipa, Tacna, Moquegua, Lambayeque, La Libertad, Piura, Áncash and Cajamarca.

On the other hand, on the renegotiation process with the consortium CamiseaCastillo reiterated that they will continue the dialogue within the current legal framework.

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According to information from Presidency, the goal of household overcrowding by 2026 is 3 million families. There are currently 1.5 million connections nationwide.

The Republic of Peru yesterday placed on the international market its first social bond in euros with a new 15-year reference, maturing in 2036, for a total of 1,000 million euros, at a coupon rate of 1.95%.

The issue managed to capture a demand of more than 2,000 million euros, with the participation of more than 120 investors with high-quality accounts from Europe (80%), America (14%), Asia (2%) and other regions (4%).

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