Regulation to optimize the use of Natural Gas and create the Gas Manager is adopted
On Wednesday, May 19, 2021, Supreme Decree Nº 012-2021-EM (the “Supreme Decree”) was published in the Official Gazette “El Peruano”, whereby (i) the Regulation of the Secondary Natural Gas Market is amended and (ii) the Regulation to optimize the use of Natural Gas¹ and the creation of the Natural Gas Manager (the “Regulation”) is adopted.
Regarding the Secondary Natural Gas Market, it must be recalled that through Supreme Decree Nº 034-2020-EM its implementation was suspended until June 30, 2020. In this context, the Supreme Decree incorporates into the Secondary Natural Gas Market the operation of the Electronic Market for the transfer auctions of volume and/or transportation capacity of Natural Gas (MECAP). It also provides that within a maximum term of ninety (90) working days the General Directorate of Hydrocarbons (“DGH”) shall adopt the operating procedure for the operation of the Secondary Natural Gas Market, including an alternative auction mechanism with notarial faith until the computer platform of the MECAP is implemented.
On the other hand, the Regulation provides that the Regulation applies to (i) agents participating in the Primary Market by contracting natural gas supply and natural gas transportation services through pipelines, as well as (ii) agents carrying out operations in the Secondary Natural Gas Market, in accordance with the Secondary Market Regulation.
In this regard, the regulation under comment creates the Natural Gas Manager, whose function is to optimize the natural gas market dispatch operations (volumes and use of transportation capacity), in order to generate the best use of natural gas and the corresponding infrastructure involved. For these purposes, the Natural Gas Manager shall develop several functions, such as (i) operating, maintaining and permanently updating the information system, (ii) estimating the availability of natural gas volumes and the availability of pipeline transportation capacity; (iii) managing the MECAP, among others.
Likewise, it is established that the DGH shall exercise the functions of the Natural Gas Manager, which shall be delegated through public procedures to a private entity of recognized solvency. Therefore, until such entity is appointed, it shall be the DGH who shall perform the functions of the Natural Gas Manager. Finally, within a term not exceeding ninety (90) working days, the DGH shall adopt the operating procedure for the application of the functions of the Natural Gas Manager.
For further information, please contact Veronica Sattler (vsattler@estudiorodrigo.com) and/or Alejandro Manayalle (amanayalle@estudiorodrigo.com) and/or Alvaro Klauer (aklauer@estudiorodrigo.com).
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This communication has been prepared by the Public Services Regulation Area.
Adopted by Supreme Decree Nº 046-2010-EM.
¹ Approved by Supreme Decree No. 046-2010-EM.
