Massify natural gas, do not nationalize

Patricio Quintanilla Paulet, rector of U La Salle

As a play on words, some authorities proposed the nationalization and then the nationalization of the natural gas fields and then massify it; They are totally different concepts and we fully agree to ensure that it reaches all regions of the country.

It is probable, conditionally, that the contract with the gas extraction and transportation concessionaires could be improved, but under the rule of law, this is achieved with negotiation and not with unilateral decisions of the State.

Centralism and the Vicious Circle

The availability of natural gas and its prices are contributing to the undesirable centralism that we have in the country and which is generating a vicious circle, because the greater competitiveness of the companies located in Lima, as a consequence of a lower energy price, increases its positioning in the market creates employment, increases demand in the capital and, consequently, attracts migration, which forces the expansion of public services.

A national newspaper, of course from Lima and which is not La República, reports that mass gas in “provinces” (it seems to forget that we are regions) means that Lima and Callao pay more; This may be real, but it is totally fair.

At the time of installing the gas pipeline to Lima, with a similar procedure, the regions assumed that cost in electricity rates, which seems to have been forgotten. If this proposal occurs, it would simply be compensating what we assumed at the time.

Energy and Development

The availability and price of energy is a fundamental factor for the growth and development of the regions, because expensive energy, such as the current one, affects production costs and consequently the competitiveness of a region.

Several years ago, there was the option of building the so-called Surperuano Gas Pipeline, which would allow natural gas to reach the southern regions, such as Cusco, Puno, Arequipa, Moquegua and Tacna; Unfortunately, the uncovering of corruption in one of the consortium’s member companies paralyzed the project more than four years ago and we lost that option.

As an alternative, totally invalid, was to create a “virtual gas pipeline”, which is to bring the gas in tanks, as is done with Liquefied Petroleum Gas (LPG), which is currently for mass consumption in companies and homes .

conclusion

Bringing natural gas to the southern regions is urgent and a priority, so it should be given higher priority, which will improve business competitiveness and the quality of life of families.

This should not mean nationalizing gas fields, which would only affect the already weakened confidence of foreign investment.

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