Minister Fernando Santos Alvite signed a ministerial agreement against the clock of the Ministry of Energy, which requires Petroecuador to import gas in the next 30 days, as well as the establishment of appropriate regulations for a series of provisions issued by that state portfolio. This ministerial agreement MEM-MEM-2023-0019-AM seeks to “face the critical conditions of the dry season in 2023 and 2024 and guarantee the supply of public energy services.”

The agreement is made after the first blackouts occurred on Monday due to the lack of electricity, and even the missed announcement that certain blackouts will take place from October 3 to 5. The ad was rejected by the same authorities that originally published it.

One of the articles of the agreement stated that “Petroecuador must carry out the necessary actions to import natural gas, exclusively for the needs of the Termogás Machala plant.” To this end, the state-owned oil company must implement the necessary procedures and logistics to supply an additional 45 million cubic feet to those currently provided by the Amistad field, in order to utilize the total capacity of 230 MW Termogás Machala Central, a supply that must be available from November 2023.

Petroecuador must take the necessary actions for the timely supply of fuel (HFO 4 and 6; and diesel) for the electricity sector.

The provisions are “mandatory for all participants in the energy sector”. In addition, the Deputy Ministry of Electricity and Renewable Energy Sources, Cenace and the Agency for Regulation and Control of Energy and Non-Renewable Natural Resources are delegated to adopt the Action Plan for the dry period from October 2023 to March 2024, which will be mandatory.

Regarding the Ecuadorian Electricity Corporation (Celec EP), the Ministry orders it to take immediate action to:

Among other provisions, it instructs you, through Celec Transelectrica, to carry out in a timely manner all operational maneuvers at the level of transmission systems related to the improvement of service in Durán, Cuenca, Manta, Policentro, Trinitaria, Dos Cerritos and Machala, in accordance with the Biennial Operational Plan 2023-2025.

On the subject, energy analyst Darío Dávalos criticized the agreement, questioning why this series of actions was not ordered earlier. He said that it is evident that the ministry will not be clear about how much fuel is needed for the power sector. For him, the Ministry of Energy overlooked the schedule of imports of derivatives that will face such a situation, thus creating a scenario of energy insecurity, such as a power outage.

Consider that the Ministry is ordering Petroecuador to work magic. “A month is being given for the Amistad field to receive imported natural gas, even though technicians in the area have said it is not possible.” He explained that other experts have said that logistical changes, if applicable, could be implemented within eight months, which would have the effect of disrupting the current bidding process.

According to what is known, in order for gas importation to be possible, and for the use of the Campo Amistad facility, a technician’s report confirming the possibility of a connection between the gas coming from the ship and the platform that uses gas from the wellhead is required. However, that report does not yet exist. Celec’s own manager, Gonzalo Uquillas, reported this Tuesday that said report could be available next week. In any case, he said that if this report fails, there is option B, which is to import the gas by barge and connect it to Termogás flexible hoses.

Other provisions