Oil & Gas Alert - May 2026
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Amendment to the General Conditions of the Natural Gas Distribution Service and to the Procedure for Supply through CNG or LNG to Certain Areas of Natural Gas Distribution Concessions
The following resolutions were recently published in the Official Gazette, El Peruano, with the purpose of adapting the regulatory framework applicable to the supply through Compressed Natural Gas (“CNG”) and/or Liquefied Natural Gas (“LNG”) within Natural Gas Distribution Systems through Pipeline Networks, in light of the amendments approved by Supreme Decree No. 023-2025-EM, which amended the Regulation for Natural Gas Distribution through Pipeline Networks, whose Consolidated Approved Text was approved by Supreme Decree No. 040-2008-EM (the “Regulation”):
1. Resolution No. 076-2026-OS/CD (“Resolution 076”), published on April 29, 2026, through which the Regulation “General Conditions of the Natural Gas Distribution Service and the Application of Tariffs to the End User,” approved by Resolution No. 054-2016-OS/CD, was amended. The main amendments are outlined below:
- Inclusion of the CNG and/or LNG Distribution Margin as concepts to be considered within distribution tariffs under supply agreements.
- Incorporation of the CNG and/or LNG Distribution Margin as tariff charges that may be billed by the distribution concessionaire to consumers.
- Establishment of criteria for calculating the Average Gas Price and the Average Transportation Cost applicable to Natural Gas Distribution Concessions through Pipeline Networks supplied through CNG and/or LNG, based on the demand served.
2. Resolution No. 085-2026-OS/CD (“Resolution 085”), published on May 6, 2026, through which the Procedure for Supply through CNG or LNG to Certain Areas of Natural Gas Distribution Concessions through Pipeline Networks, approved by Resolution No. 278-2014-OS/CD, was amended. The main amendments are outlined below:
- Clarifications regarding the Economic and Technical Feasibility Assessment process for the supply of natural gas through pipelines conducted by the Supervisory Agency for Investment in Energy and Mining (“OSINERGMIN”), in relation to supply through CNG and/or LNG.
- Incorporation of principles applicable to the Public Tender processes that concessionaires must conduct to procure the services required for supply through CNG and/or LNG. Likewise, the term of the agreements resulting from such tenders has been reduced from twenty (20) years to four (4) years, which term may be extended subject to the prior favorable opinion of OSINERGMIN.
- Clarifications regarding the components used to determine the CNG and/or LNG Distribution Margin.