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Oil & Gas Alert – September 2022

ALERT – OIL AND GAS

Modification and reordering of the schedule for the issuance of certificates of conformity by Bottling Plants and Bulk Distributors in favor of LPG Direct Consumers and LPG Distribution Networks, adopted by Resolution Nº 037-2021-OS/CD, is adopted

By Resolution Nº 178-2022-OS/CD (“Resolution”), published on September 30, 2022 in the Official Gazette “El Peruano”, the schedule adopted by Resolution Nº 037-2021-OS/CD, for the issuance of certificates of conformity (“Certificates”) of the tanks transferred to LPG Direct Consumers and LPG Distribution Networks by Bottling Plants and Bulk Distributors was modified.

In accordance with the provisions of Supreme Decree Nº 034-2014-EM, the Bottling Company or Bulk Distributor that has transferred tanks in use to a Direct LPG Consumer or to an LPG Distribution Network, must guarantee, through a Certificate, that it complies with the safety conditions.

By Supreme Decree Nº 009-2020-EM, the Bottling Companies and Bulk Distributors that have transferred tanks in use and have not yet complied with the current regulations were authorized to comply with the adaptation term of no more than three years as determined by OSINERGMIN. By Resolution Nº 037-2021-OS/CD, the OSINERGMIN adopted the “Requirements and Deadlines for Adaptation to the Procedure for Obtaining the Certificate of Conformity of LPG Direct Consumers and LPG Distribution Networks”, and established that the facilities with total storage in tanks equal to or less than 500 gallons must obtain the Certificate until September 30, 2022, and the facilities with storage capacity greater than 500 gallons must obtain the Certificate until December 31, 2022. Once these deadlines expired, OSINERGMIN would proceed with the provisional suspension of the registration in the Registry of hydrocarbons of the LPG Direct Consumer facilities or of the LPG Distribution Network owners that do not have the corresponding Certificate.

Due to the emergency situation, the Bottling Companies or Bulk Distributors have had difficulty to access the premises and facilities of the LPG Direct Consumers and LPG Distribution Networks and to carry out the inspections leading to the granting of the Certificate. For this reason, it was agreed to establish a new schedule that allows the Bottling Companies or Bulk Distributors to carry out the inspections to the facilities that are pending and issue the Certificates, within the three-year term provided by Supreme Decree N° 009-2020-EM, according to the following detail:

Installations in LPG Direct Consumers and LPG Distribution Networks with total storage in tanks Deadline for Certificate issuance
More than 1,000 gallons August 31, 2023
Greater than 250 gallons to 1,000 gallons December 31, 2023
Less than or equal to 250 gallons February 28, 2024

Any query on the matter may be answered by doctors Jorge Pérez-Taiman (jpereztaiman@estudiorodrigo.com), Carolina Noriega (cnoriega@estudiorodrigo.com), Piero Scarafone (pscarafone@estudiorodrigo.com) y/o Talía Hormaeche (thormaeche@estudiorodrigo.com).