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The price of natural gas will rise in Lima, but fall in the provinces

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With 108 votes in favor, two against, and zero abstentions, Parliament approved an opinion proposing Law 679-2021-PE establishing measures to facilitate public access to natural gas.

What does this law say?

Law approved by reconsideration contains amendments made Energy and Mines Commissionwhich set out the application deadlines for projects, identify the beneficiaries of the measure, as well as funding schemes, among other aspects not included in the original proposal.

It also allows creating a compensatory mechanism for decentralized access to natural gas, which will allow setting a single rate for its consumers. For this background the surcharge will apply to the natural gas transportation service through the pipeline.

What does this mean?

Hydrocarbon specialist Aurelio Ochoa explained to management that the surcharge for a compensation mechanism will be implemented for Cálidda users in Lima and Callao; besides Kontuga in Ikawhich are companies that make up LPG carrier Peru.

Ochoa explained that the subsidy would reduce the domestic rates currently enjoyed by those who have to pay more for the service, allowing payments to be standardized nationally.

In addition, the regulation sets a deadline 180 days to the executive director to implement the selected massification projectsin accordance with the needs of local governments.

Projects proposed by private

The executive branch proposed that only state-owned companies deal with gas distribution; however, after the commission change, individuals will be allowed to distribute gas in projects promoted by the Ministry of Energy and Mines (Minem), which will be funded by canon resources and royalties, subject to a positive opinion from the Ministry of Economy and Finance (MEF).

The project will also provide an opportunity municipal savings and loan banks to finance home infrastructure work; that is, connections in homes that allow massive use of gas.

Source: RPP

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