Massive use of gas and end conflicts: the Minem’s pending issues

Last Tuesday, President Pedro Castillo appointed Alessandra Herrera Jara as the new head of the Ministry of Energy and Mines (Minem) to replace Eduardo González Toro, who had held the position since October 2021.

The new official is a lawyer and has worked as a consultant and director in various portfolios.

At mineuntil August 2020, she held the position of advisor to the General Secretariat, three years before she was director of the General Directorate of Mining Formalization (2015-2017). In addition, he has experience in community relations issues and in the analysis and prevention of social conflicts.

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Precisely, the management of social conflicts is one of the great challenges of its management, since in 2021 they caused a loss of around US$ 2,000 million to the sector, mainly due to those that occurred in the southern mining corridor, points out the former vice minister of Minas Rómulo Mucho.

According to the also professor of the National University of San MarcosTo solve this problem, the new minister must promote long-term territorial development policies in conjunction with companies and communities.

Another pending issue is the promotion of the portfolio of mine construction projects for this year.

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Finally, much highlights that another great challenge that Herrera Jara will have to face is the advance of informal and illegal mining in the Peruvian jungle.

For his part, Aurelio Ochoa, former chairman of the board of Perupetrospecifies that the current management has as its main pending the review of the current Mining Law “in agreement with the private sector” to achieve greater competitiveness in extractive activity.

Likewise, the specialist emphasizes that the portfolio should promote liquefied natural gas (LNG) for “transportation in mining.”

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In the field of electrical energy, Ochoa mentions that the current administration would have to review the Electricity Concessions Lawin such a way as to reduce rates that are currently “more expensive than in neighboring countries.”

Mass use of natural gas

The massification of natural gas from Camisea is one of the main commitments of the current Government. The bill, which was presented in November before Congress, is currently before the Energy and Mines Commission.

To carry out this campaign promise, the Executive created a Multisectoral Commission for the mass use of hydrocarbons. The working group made up of six ministries and Perupetro published the final report on January 22, 2022.

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In that sense, Aurelio Ochoa emphasizes that Minister Herrera should use the information contained in the document as a “roadmap” to ensure the volumes of gas required for mass production.

Therefore, he points out that a pending issue on the Minem agenda is the promotion of the exploration of new natural gas reserves.

Data

In Congress. In November, the Executive presented project no. 679/2021-PE for the mass use of gas.

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Multisector Commission. They integrate: PCM, Minem, MEF, Mincetur, Minjus, Foreign Relations and Perupetro.

Bring order to the new Minem

Carlos Herrera Descalzi former Minister of Energy and Mines

The challenges for the new minister Alessandra Herrera they are big because the situation in the sector is difficult. I see that the Minem is totally disorganized and has been managed almost capriciously with little knowledge of

the situation for years. For example, the electricity sector has not been attended to, but the problems do not come to light because they are not as evident as the others. The mining sector at this time should be trying to make the most of the international situation, but instead it is drowning in a glass of water because of its internal conflicts. The messages towards investment, in hydrocarbons and mining, have been little cautious. President Castillo could have made mistakes, but in his words he always called for investment. The others (officials) kept her away.