The Peruvian Hydrocarbons Society (SPH) has raised concerns about the country’s current regulatory framework, warning that it could significantly hinder the expansion of natural gas distribution. The organization is calling for an urgent review of the model to ensure the sustainability of service and the development of vital infrastructure.
The SPH points out that concessionaires’ investments are not being properly reflected in tariff setting, which may slow down the mass adoption of natural gas. This could delay access to more affordable energy for Peruvian families. While significant investments are being made, the lack of a predictable and attractive environment for natural gas distribution means that the regions will suffer the most.
As a result, households, businesses, CNG vehicles, and industries will miss out on the benefits of cleaner and cheaper energy. The impact could also hinder regional development and economic competitiveness. Many sectors depend on natural gas for their production processes and could struggle to operate efficiently under current conditions.
For the SPH, the regulatory model must ensure not only the continuity of the service but also stability and predictability to attract investments. It must offer legal security to concessionaires, facilitating network expansion and new projects.
“The country needs regulations that are both predictable and fair to encourage investment and support sustainable energy infrastructure development. Widespread natural gas use is a key opportunity to improve living standards, reduce energy poverty, and boost Peru’s competitiveness. But this can only happen if sector rules make projects financially viable,” said Felipe Cantuarias, president of the SPH.
The association has called on authorities to conduct thorough technical reviews and adjust the regulatory framework to foster investment and support network expansion for the benefit of all regions.
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