SPH: Massification of natural gas at the national level would contribute to reducing poverty rates

SPH: Massification of natural gas at the national level would contribute to reducing poverty rates
SPH: Massification of natural gas at the national level would contribute to reducing poverty rates

*The use of more economical and eco-friendly energy would generate significant savings for the economy of the most needy families, says Felipe Cantuarias, president of the union.

Within the framework of the necessary efforts to reduce poverty rates, which today affect 29% of Peruvians, the Peruvian Hydrocarbons Society (SPH) proposed promoting the massification of natural resources at the national level in all regions of the country, in order to generate significant savings for the most needy families and promote true economic decentralization.

Felipe Cantuarias, president of the SPH, explained that an additional factor to the generation of employment and income to reduce poverty, households can generate significant savings in their shopping basket, in this sense he mentioned that the use of natural gas, a resource that we produce 100% and that has a regulated price, is an opportunity to achieve significant savings for the family economy that has been hit hard in recent years and that is reflected in the recent INEI figures.

In this context, the SPH considers inexplicable and without technical support that the Bill approved by the Energy and Mines Commission that creates a Levelized Rate for Natural Gas insists on rejecting the technical proposal of the Executive Branch and places a barrier to development of the massification of natural gas, limiting its application to only 50,000 M3, when the Executive’s proposal, which has the support of all unions, experts and regions, is that it should include all regulated clients, that is, up to 900,000 M3 monthly so that all homes, SMEs and industries in the regions benefit from savings of up to 130% in energy costs.

“Today in Lima, households, SMEs and industries that use natural gas have savings of up to 130% in energy costs compared to what the regions of the country spend. Therefore, if we really want to contribute to reducing poverty, we have to accelerate the massification of natural gas in regions,” he commented.

As an example, Cantuarias mentioned that a home in regions that currently has a hot tub and electric stove spends 205 soles per month and 150 soles on LPG, while with natural gas they would pay only 49 soles. “A taxi driver who travels 100 kilometers a day, if he migrates to natural gas for vehicles, can save more than 1,000 soles per month, benefiting the family economy. Without a doubt, there are very large savings opportunities that would impact the family economy and the quality of life of Peruvians,” he noted.

Private companies promote massification

On the other hand, Cantuarias specified that the advances in the massification of natural gas in Peru have been achieved, mainly, by contributions from the private sector, which has invested more than US$3,000 million; while the State only invested S/2,000 million for home connections and, to a lesser extent, expansion of the pipeline network.

He pointed out that the current fiscal deficit makes it impossible for the State to have sufficient resources to finance the massification of natural gas at the national level, as some people have pointed out, since – to date – the Energy Social Inclusion Fund (FISE) does not has greater spending capacity.

The single natural gas rate will be a temporary boost that will contribute to increasing the demand for natural gas in regions, creating the conditions for the private sector, through regional operators regulated by Osinergmin, to invest in pipeline infrastructure and home connections. It is estimated that in the coming years, private investments in natural gas infrastructure will reach US$5 billion.

 
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