Peru grants delay after gas distributor says investments 'not viable'

Peru's energy and mining investment regulator Osinergmin approved a postponement of natural gas distributor Gases del Pacífico's (GDP) 2025-29 investment plan.

The decision applies to GDP's 2026 works plan and follows requests submitted by the Promigas-controlled concessionaire, also known as Quavii, which serves the northern regions of Lambayeque, La Libertad, Áncash and Cajamarca.

The watchdog said that in one letter from GDP, the distributor "reported that it was not contemplating carrying out investments during 2026, considering that the investments planned for that year would be economically unviable. It also stated that it did not foresee executing new projects or expansions during that period."

In another filing, GDP "reiterated that the investments planned for 2026 were, in its opinion, inexecutable due to a lack of technical and economic viability, noting that their eventual execution in later periods would depend on the presence of certain viability conditions."

Osinergmin said the approval does not exclude the works from the 2025-29 plan, nor does it exempt or waive the associated investment obligations.

BNamericas previously reported that executives from Bogotá-based Promigas flagged regulatory hurdles for GDP and its sister distributor Gases del Norte del Perú, particularly what they said was the state's failure to recognize the costs of having to truck LNG from Lima for GDP.

Promigas distribution vice president Wilson Chinchilla said in November 2025 that GDP had suspended investments, with financial and administrative vice president Aquiles Mercado commenting on potential arbitration.

Read Will regulatory strain drive out another Peru gas investor?

Promigas Perú told BNamericas they are waiting for the technical and legal reports accompanying the resolution to be published before making a comment.

Osinergmin data show that in the first quarter of 2026, demand in GDP's concession was 8.7Mf3/d, of which 47% was industrial offtake, 34% came from homes and businesses, and 19% was for vehicular natural gas.

GDP began commercial operations in 2017, and its concession is for 19 years.

(The original version of this content was written in English)