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Oil and Gas Alert – March 2021

ALERT – OIL AND GAS

Adoption of Requirements and Deadlines for Adaptation to the Procedure for Obtaining the Certificate of Conformity of LPG Direct Consumers and LPG Distribution Networks

Resolution No. 037-2021-OS/CD (“Resolution“) published on February 26, 2021 in the Official Gazette El Peruano, provided for the adoption of the “Requirements and Deadlines for Adaptation to the Procedure for Obtaining the Certificate of Conformity of LPG Direct Consumers and LPG Distribution Networks”, applicable to Packing Companies and/or Bulk Distributors that transferred LPG storage tanks in use to LPG Direct Consumers and/or LPG Distribution Network holders, which to date have not complied with the issuance of the Certificates of Conformity attesting to compliance with the safety conditions of each facility.

Through Supreme Decree No. 034-2014-EM, it was established that the Packing Companies and Bulk Distributors that have transferred tanks in use of their property to LPG Direct Consumers and/or LPG Distribution Network holders must guarantee, through the issuance and delivery of a Certificate of Conformity, that each of the facilities complies with the safety conditions required for its operation. For such purposes, OSINERGMIN was required to approve an adaptation schedule, whose terms should not exceed a period of two (2) years. As a result, through Resolution No. 089-2015-OS/CD, OSINERGMIN adopted the applicable procedure establishing an adequacy period of up to twenty (20) months from the entry into force of the aforementioned resolution.

Through Supreme Decree No. 009-2020-EM, published in the Official Gazette El Peruano, on April 22, 2020, the LPG commercialization and safety regulations were amended, and the Packing Companies and Bulk Distributors that have transferred tanks in use of their property and have not yet complied with issuing the mentioned Certificate of Conformity were empowered to avail themselves of an additional period of adequacy. For such purposes, it was provided that OSINERGMIN adopts the procedure, requirements and deadlines.

As a result, OSINERGMIN adopted the Resolution in question, whereby the following adaptation terms are established, depending on the storage capacity of the transferred tanks:

Upon expiration of said terms, OSINERGMIN shall provisionally suspend the registration in the Hydrocarbons Registry of the Direct Consumer or holder of the LPG Distribution Network that does not have the corresponding Certificate of Conformity.

Any query on the matter may be answered by Dr. Jorge Pérez-Taiman (jpereztaiman@estudiorodrigo.com), Dr. Carolina Noriega (cnoriega@estudiorodrigo.com) and/or Dr. Talía Hormaeche (thormaeche@estudiorodrigo.com).