We must accelerate the massification of natural gas in Peru

Statement Automotive Association of Peru

This is an automated translation of the original press release issued in Spanish

“As we well know, oil, the fuel that we mostly import, continues to have an important participation in the Peruvian energy matrix; however, since 2004 natural gas (NG) is also part of it and has allowed us to boost our economy”, stated Eduardo Guevara, partner of CMS Grau, during his presentation at the academic session of the Automotive Meeting organized by the Automotive Association of Peru (AAP) after noting that currently approximately 40% of the electricity we consume is generated with NG.

The specialist recalled that in Peru there is an important reserve of NG (such as the Camisea deposits), both in production and consumption, which can supply us for 30 years; and, therefore, he said, today we have the imperative need to accelerate the massification throughout the national territory. Despite having the resource, “in the country we have a very little developed local demand. The price of NG that is marketed locally has established ceiling prices. These prices are not affected by the international situation; which has allowed us to take advantage of NG for electricity generation”, emphasized Guevara.

During the academic day, the CMS Grau partner indicated that, as in the use of domestic NG, there has been no success in massifying vehicular natural gas (VNG), due to the little support it has received from the State. However, he highlighted some efforts that are being made to promote NGV. "A control system has been implemented in the NGV load, which allows guaranteeing its safety in the operation," he added.

Along the same lines, the specialist indicated that according to the Energy Social Inclusion Fund (FISE), there are currently 344 CNG Service Stations; In addition, there are more than 350,000 vehicles (cars, buses, trucks, motorcycle taxis) using CNG. However, he said, more promotion is needed; Thus, more Peruvians will be able to receive the benefits of the GN.

Due to the increase in the price of oil in recent times, "in 2022 the record number of more than 64 thousand conversions of vehicles to CNG was reached (according to official information as of October 2022). However, only in eight regions of the country (Piura, Lambayeque, La Libertad, Ancash, Lima, Junín, Ica, and Cusco) we have CNG charging stations," he said.

Guevara maintained that there is a market to be developed, which is why a greater impulse is required from the State and a commitment from the private sector. Only with the coordinated effort between both will it be possible to promote the use of NGV and reduce our dependence on imported fuels and with volatile prices, but most importantly, it will be possible to "bring NGV to regions such as Ucayali, Ayacucho, Arequipa, Moquegua and Tacna and thus promoting the economic reactivation of the entire country”, he concluded at the end of his presentation during the Automotive Meeting organized by the Automotive Association of Peru (AAP).