Oil & Gas Alert - December 2025
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AMENDMENT TO THE NATURAL GAS DISTRIBUTION BY PIPELINE REGULATIONS APPROVED
On December 16, 2025, Supreme Decree No. 023-2025-EM (“Supreme Decree”) was published in the Official Gazette El Peruano. This decree amends the Natural Gas Distribution by Pipeline Regulations approved by Supreme Decree No. 042-99-EM (“Regulations”) and Supreme Decree No. 033-2013-EM, which amended the Consolidated Text of the Regulations, approved by Supreme Decree No. 040-2008-EM.
The overall objective of these amendments is to adapt the current regulations to the present context of the natural gas distribution by pipeline market and to complement the regulations applicable to the total or partial supply scheme of distribution systems using compressed natural gas (“CNG”) and/or liquefied natural gas (“LNG”).
Among the main modifications approved by Supreme Decree, the following stand out:
- Modification of the definitions of “Marketing Margin,” “Distribution Margin,” “Distribution System,” and “Tariff”; as well as the incorporation of definitions for “Distribution Tariff” and “Distribution Margin for CNG and/or LNG.”
- Modification of Article 104 to include LNG Regasification Stations and CNG Decompression Stations as part of the Distribution System.
- Amendment of Article 110, on investments in the facilities of the Distribution System, and of Article 112, on the costs of operation and maintenance, to include in these, that the Concession Contracts could establish specific conditions, considering the supply methods of the Distribution System, the heterogeneous conditions of the areas that comprise the Concession Area, as well as the complexity of the presentation of the Distribution Service, provided that the competitiveness of the Tariff with respect to the energy substitute is not affected.
- The addition of Article 121-A, which provides for the suspension of the tariff-setting process in the event of a modification to the Concession Agreement that alters the conditions existing at the start of said process, so that the Concessionaire can incorporate the aspects arising from the contract modification into its tariff proposal.
- The amendment of Article 131, which refers to the holding of Public Offers and/or the execution of private investment promotion processes, by the Concessionaire or the State (as applicable), for the acquisition of LNG or CNG, as well as for the provision of compression, decompression, liquefaction, regasification, and transportation services for CNG or LNG, and other activities necessary for supplying the Distribution System. This provision, which was previously optional, is now mandatory.
Finally, in accordance with the Supreme Decree, the Supervisory Agency for Investment in Energy and Mining (OSINERGMIN) has ninety (90) business days to update the Procedure for Supplying Natural Gas via CNG or LNG to certain areas of the Natural Gas Distribution Concessions via Pipeline Network, approved by Resolution No. 278-2014-OS/CD, as well as the General Conditions for Natural Gas Distribution Service and the Application of Tariffs to the End User, approved by Resolution No. 054-2016-OS/CD.