Implementation of the Regulation of the Secondary Market of Natural Gas was suspended
Today, Supreme Decree No. 034-2020-EM was published in the Official Gazette “El Peruano”, by which the implementation of the Regulation of the Secondary Market of Natural Gas (the “Regulations“) was suspended and adopted by Supreme Decree No. 046-2010-EM, until June 30, 2021.
In this regard, it must be recalled that the Regulations aims to regulate the operations carried out in the Secondary Market of Natural Gas to ensure the efficient use of the production and firm transportation capacity of Natural Gas, establishing that production transfers must be carried out by electronic auctions. Thus, said regulation provided that for a period of no more than one (1) year, transactions in the Secondary Market could be carried out in the form of bilateral agreements, after which they must be adapted to the electronic auction mechanism.
In this context, during this year the Ministry of Energy and Mines (“MINEM“) has carried out two pre-publication processes for comments on the “Draft Regulations of the Natural Gas Manager”, which – since its entry into force – shall amend the Regulations by optimizing the applicable regulatory framework. As such, while MINEM shall receive comments from interested parties on said draft regulations until January 5, 2021, the process of (i) evaluation of comments, (ii) approval of the regulations and (iii) issue of OSINERGMIN proposals for the operational functioning of the Secondary Market shall require additional months for their completion.
Therefore, without prejudice to the fact that the transactions in the Secondary Market may be carried out through bilateral agreements during the following months, no later than June 30, 2021 will the Regulations and the execution of production and/or transportation transfers of Natural Gas through electronic auctions shall enter into force.
For further information, please contact Verónica Sattler (vsattler@estudiorodrigo.com), Alejandro Manayalle (amanayalle@estudiorodrigo.com), and/or Alvaro Klauer (aklauer@estudiorodrigo.com).
