3 years ago, the Spanish company Naturgy withdrew from the south west concession that provided natural gas to Arequipa, Moquegua and Tacna, and led to the entry of Petroperú as temporary administrator. During that time, not a single residential, commercial or faucet installation was reconnected. Petroperú, by law, was only responsible for operating and maintaining what already existed.
The Ministry of Energy and Mines (Minem) found a way out and, through the FISEwill be responsible for the construction of the network facilities through bidding with a new company that will be responsible for the permits, designs and construction of the networks to connect more families.
As La República announced, the restart of works in the south west concession will be gradual: in this first stage, US$15 million of the US$173 million budgeted will be allocated for the construction of 149.80 kilometers of gas distribution networks (93 .4 in Arequipa; 39.7 in Tacna; 9.7 in Moquegua; and 6.9 in Ilo), benefiting 12,118 new homes.
The tender has already been launched and on December 22 the name of the winner will be announced, who will be in charge of the permits, procedures and construction engineering. The procedures could begin in January and it is expected to have, in March 2024, the first connected users in Arequipa.
Precisely, last Tuesday, November 7, the process of intention to participate in the tender was opened. Until the close of the day, letters of interest were received from at least seven national companies.
“The economic resource is guaranteed by FISE for the project. With this we are starting, it does not mean that it is the only thing,” says Noel Ñiquen, coordinator of Natural Gas Projects at FISE.
Naturgy’s liabilities
When Naturgy terminated its contract, some 800 houses were left with internal pipes built, but without gas. As a first stage, Minem will seek to enable the service, a task that should also be completed in December.
These will be the first users enabled with the new FISE scheme. The US$173 million allocated for the massification of gas in the south is aimed at 21,800 homes, out of 11,392 already existing.
Throughout this process, the state Petroperu Its sole function will be to supervise the new connections and, once the homes are connected, it will be in charge of the operation, maintenance and billing of natural gas.
“There are legal issues that make it impossible for Petroperú to make investments, which is why the Government makes the expenditure through FISE funds. Petroperú cannot make investments in CAPEX,” Ñiquen remarked.
For its part, the oil company has expressed its optimism regarding the ambitious plan. Criseida Correa Ramírez, Accounting and Finance coordinator of Petroperú’s Corporate Gas Management, assured that the works will be carried out “in application of the highest standards of quality and safety.”
He explained that, after concluding the contracting of the companies that will be in charge of its execution (always towards the first quarter of 2024), the specific investment agreement will anticipate a final horizon of 350 km of distribution networks.
“The Arequipa region will benefit with the connection of 15,924 homes, building 258 km of networks, in addition to financing connections for 35 social institutions and 143 mypes. In the vehicle sector, 1,100 vehicles will be converted to CNG”Correa said.
Natural gas: single rate is approved in Congress
The Plenary Session of Congress finally approved PL 679, which had been voted favorably last June, but which required some modifications before being sent for promulgation by the Executive Branch.
Among the most important aspects is a single national rate, known as the “stamp” rate (cross subsidy), which would favor massification.
The original plan included consumption of 900,000 m³/month for different types of users who could benefit, however, left Congress with no more than 50,000. According to dealerships and specialists, this change sabotages the law.
Figures
- 400 km of networks exist today in the south west concession.
- 13 m³ of natural gas each month is the average consumption of families in the south.
- Petroperú operates 6 regasification plants in the south: 3 in Arequipa, 1 in Ilo, 1 in Moquegua and 1 in Tacna.
Source: Larepublica
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