Peru: Government will promote nine large mining projects and will promote the network of pipelines for the massification of natural gas

This Minem release was published using machine translation.

The President of the Council of Ministers, Alberto Otárola, during his speech before the plenary session of Congress, explained the Government's policy, where he announced that mining will be promoted and that it will focus on monitoring and unlocking nine large productive projects that represent a portfolio of 10,555 million dollars.

These are the Toromocho projects, Yanacocha Sulfides, Antamina Extension, Inmaculada Optimization, Zafranal Deposit, San Gabriel Project, Río Seco Copper Plant, Yumpaq Project and Retamas Expansion, among others. He specified that he will personally be in charge of working on the unlocking of the administrative procedures of the detailed projects, respecting the socio-environmental regulations.

massification of natural gas

At another point in his speech, he referred to the mass use of natural gas and maintained that the Ministry of Energy and Mines (MINEM) will promote the expansion of the current natural gas network, with an investment of 491 million soles so that 110,000 households can access cheaper and less polluting fuel.

“The government will promote the Natural Gas Massification project through a network of pipelines in two producing regions: Cusco and Ucayali, and five high Andean regions: Ayacucho, Huancavelica, Junín, Apurímac and Puno. Likewise, it will manage and promote the development of the Arequipa region. It is our purpose that, in July 2024, the populations of Ayacucho, Cusco, Ucayali, Apurímac, Huancavelica, Junín and Puno have the natural gas service”, he pointed out.

Likewise, he announced that the South Gas Pipeline project will be reactivated so that it can be executed and completed as conceived, which will allow the development of a Petrochemical Complex, which includes fertilizers and also thermoelectric plants, reinvigorating mass programs for the south coast of the country.

In addition, in its presentation, Otárola reported that, by July 2024, natural gas coverage will be reached in 2 million connected homes. He said that currently, there are more than 1.8 million homes, distributed in Lima, Callao, Ica, Áncash, La Libertad, Lambayeque, Cajamarca, Arequipa, Moquegua, Tacna and Piura, whose members enjoy the benefits of cheap fuel and cleansed.

He also maintained that, in December 2022, 370,000 vehicles were converted to natural gas. More than 68 thousand vehicles were financed by the Ahorro GNV program. And it is expected that by July 2024 an additional coverage of 150,000 vehicle conversions to CNG will be achieved in 9 regions of the country: Lima, Callao, Ica, La Libertad, Cusco, Junín, Lambayeque, Piura and Áncash.

Regarding the vouchers of the Social Energy Inclusion Fund (FISE), which subsidizes the purchase of 10-kilo LPG cylinders, he said that, in the producing areas, an increase in the subsidy of 11 soles has been approved, which will raise the value of 32 at 43 soles. While, in the areas of direct influence of the extraction operations, the vouchers will rise from 32 to 63 soles.

Referring to the Talara Refinery, he announced that it will start producing low-sulfur fuels in January, both for diesel and for naphtha or gasoline, with a sulfur content of less than 50 parts per million. For the "first quarter, it will complete the commissioning of the high-conversion units, remaining in commercial operation," he said.

Electricity for more Peruvians

The head of the PCM also mentioned that within the Electricity subsector, the supply of electricity will be guaranteed, through the National Interconnected Electric System. To this end, 12 electricity transmission projects are underway that will come into operation in July 2023, with an investment of 664 million dollars. Among them, the projects: Link Mantaro – Nueva Yanango – Carapongo and the Link of 500 kilowatt hours Nueva Yanango – Nueva Huánuco.

He also announced that next July the project Enlace Ica - Poroma, Enlace Cáclic - Jaén Norte and the interconnection line with Ecuador Piura Nueva - Frontera will be granted, with an investment of 350 million dollars.

Likewise, in December 2023 it is planned to award the concession of 10 transmission line projects that represent an investment of 1.1 billion dollars, among which are the Huánuco - Tocache - Celendín - Trujillo Link and the Celendín - Piura Link.

Finally, he pointed out that, to reduce the costs of electricity bills, the 2023 Electricity Bonus will be delivered, a subsidy of up to 30 soles aimed at residential electricity users considered vulnerable. “This will cover the payment of bills for 3 months distributed in 3 electric service bills of up to 10 soles. This bond will benefit 4 million 900 thousand users throughout the country”, he indicated.