Free transcript, for Legal purposes please refer to original Spanish version
Law of Promoting the Development of Natural Gas Industry
LAW Nº 27133
(*)In accordance with Article 65 of Supreme Decree N° 081-2007-EM, published on November 22,
2007, case of Concessions included within the scope of the Law Nº 27133, Law for the Promotion
of Development of Natural Gas Industry, Users of Network referred to that Law, it may not transfer
capacity while it is in effect the guarantee provided for in the Law Nº 27133.
CONCORDANCE:
S.D.Nº 040-99-EM (REGULATION)
S.D. Nº 042-99-EM
R. N° 084-2003-OS-CD
R. N° 077-2004-OS-CD
R. N° 078-2004-OS-CD
S.D. N° 016-2004-EM
S.D. N° 018-2004-EM
S.D. N° 022-2004-PRODUCE
S.D. N° 006-2005-EM (Regulation for installation and operation of
Establishments of Public Sale of Vehicle Natural Gas (GNV)
S.D. N° 064-2005-EM, Regulation, Art. 6
S.D. N° 037-2006-EM, Art. 6
Law N° 28832, Sixth Final Supplementary Provision
Law N° 28849 (Decentralization of access to natural gas consumption)
R.M. N° 385-2006-PCM (Camisea Working Group constitutes as
Multisectoral Commission ascribed to Ministry of Energy and Mines)
R. Nº 719-2007-OS-CD, subsection.6 (Approve Rule “Procedure for the
Elaboration of Tariff Research about Regulated Aspects Natural Gas Distribution)
Law Nº 29163, Art. 3 (Law of promotion for development of Petrochemical
industry)
S.D. N° 001-2008-EM, Art. 1
R. Nº 225-2008-OS-CD, Appendix (Rule "Procedure for the Elaboration of
Tariff Research about Regulated Aspects of Natural Gas Distribution"
R. Nº 0340-2008-OS-CD (Set Rates for Camisea Main Network)
D.LEG. N° 1041, Art. 5 and Fifth Transitory Provision
R. N° 659-2008-OS-CD, Art. 39
S.D. N° 066-2008-EM (Approve Regulation of the Law Nº 29163, Law of
Promotion for development of Petrochemical industry and amend Regulation approved by Supreme
Decree Nº 031-2004-EM)
THE PRESIDENT OF THE REPUBLIC
WHEREAS:
The Congress of the Republic
Has given the following Law:
THE CONGRESS OF THE REPUBLIC;
Has given the following Law:
LAW TO PROMOTE THE DEVELOPMENT OF THE NATURAL GAS INDUSTRY
Article 1.- Objetc of the Law
The present Law is aimed at establishing specific conditions for promoting the development
of the natural gas industry, promoting competition and encouraging diversification of energy
sources to increase the reliability of energy supply and competitiveness of the country's productive
apparatus.
Article 2.- Glossary of terms and definitions
When in this Law the terms used, with initial capital letters, listed below, should be
understood as:
2.1. Capacity.- Volume of gas to transport per unit of time. Is usually expressed in million
cubic feet per day or million cubic meters per day.
2.2. Contracted Capacity(s).- Transport capacity required or demanded by the customer to
the operator of the Main Network, as set forth in the respective sales contract.
2.3. Guaranteed Capacity.- Transport capacity by Main Network required as minimum, as
provided the respective Contract.
2.4. Initial Consumer(s).- Natural gas consumer that participates in the Promotion Process
and signs sale contracts of gas and transport capacity of the Main Network before the granting
referred to in Articles 4 and 5 of this Law.
2.5. Contract(s).- Signing contract (s) under Single Revised Text, Law Nº 26221,
(*)RECTIFIED BY ERRATA Organic Hydrocarbon Law and Legislative Decree Nº 674. (*)
(*) Subsection substituted by Article 2 of the Law N° 28552, published on June 19, 2005, which
reads as follow:
“2.5 Contract(s).- Signing contract(s) under Law Nº 26221, Organic Hydrocarbon Law.”
2.6. Cost of Service.- Efficient cost of the Main Network service tendered by the investor
according to the procedures for granting of the Single Revised Text. That cost includes investment
and operating costs and maintenance of the investor.
2.7. CTE.- Energy Tariffs Commission.
2.8. Guarantee.- Mechanism to guarantee annual incomes that reward adequately the Cost
of Service to Investors.
2.9. Electric Generator(s).- Electric consumer that designates natural gas for electri
generation.
2.10. Other consumers.- Consumers of natural gas did not include in the definition of
Electric Generator.
2.11. Promotion Process.- Procedures to encourage the signing of contracts for the sale of
natural gas or Main Network Capacity by the Initial Consumers. This process will be defined in the
Basis or its equivalent.
2.12. Main Network.- Pipelines Network designated to Natural Gas Transport and to the
distribution of Natural Gas at high pressure, including Initial Consumer connections.
2.13. Regulation .- Rules to those referred to in Article 10 of this Law.
2.14. Single Revised Text.- Single Revised Text of the Rules with force of Law that regulate
the Granting in Concession to the Private Sector of Public Works of Infrastructure and Public
Services, approved by Supreme Decree Nº 059-96-PCM and its supplementary rules.
2.15. Network users.- Comprises Electric Generators and other Consumers who use the
Main Network.
Article 3.- Declaration of public necessity
Declared of national interest and public need, the promotion and development of natural
gas industry, including the exploitation of gas fields, development of transport infrastructure for gas
and condensate; the natural gas distribution by pipeline network; and industrial uses in the country.
CONCORDANCE:
natural gas)
S.D. N° 019-2004-EM (promotional measure to generate electricity using
Article 4.- Additional procedures for the exploitation of proven reserves of natural gas
In addition to the procedures contained in the Organic Hydrocarbon Law, the granting of
rights to exploit natural gas proved reserves may be effected according to the procedures provided
for in Single Revised Text and the Legislative Decree N° 674.
In all cases, should take into account the following:
a) Ensure supplies to domestic market of natural gas, for a minimum period defined in the
Contract; and,
b) Set a maximum Price for natural gas at the wellhead and clarify the procedures for the
appliation of prices and/or conditions in the sales of natural gas. (*)
(*)Article replaced by Article 3 of Law Nº 28552, published on June 19, 2005, which reads as
follows:
“Article 4.- Additional procedures for the exploitation of proven reserves of Natural Gas
The procedures contained in the Organic Hydrocarbon Law for the granting of rights to
exploit Natural Gas proved reserves should take into account the following:
a) Ensure supplies to domestic market of Natural Gas.
b) Set a maximum price for Natural Gas at the wellhead and clarify the procedures for the
application of prices and/or conditions in the sales of Natural Gas.
c) In the Contract Areas in which produce Associated Natural Gas, the royalty or retribution
is calculated on the basis of Fiscalized Natural Gas and its sales price in the domestic or export
market, as the case. For such purpose shall be deemed Fiscalized Natural Gas to Natural Gas sold
during the respective valuation period defined in each Contract, which volume must be expressed in
thousand cubic feet (TF3) and heat content in British Thermal Units (BTU).
Natural Gas that is not sold for a valuation period may be assigned to the following
purposes, inside or outside the Contract Area, without implication in the determination of retribution
or royalty:
1. Used in Contractors operations, in accordance with the provisions of Article 40 of the Law
Nº 26221, Organic Hydrocarbon Law;
2. Reinjected into the reservoir;
3. Stored in natural reservoirs;
4. Burned, in accordance with the provisions of Article 44 of Law Nº 26221, Organic
Hydrocarbon Law.
d) The reinjection, storage and/or burning of Natural Gas may be carried out, even after
processing and/or having been extracted their liquids inside or outside the Contract Area."
CONCORDANCE:
Law Nº 29163, Art. 3
Article 5.- Granting in Concessions for gas and/or condensate transport and/or gas
distribution by pipeline network
In addition to the procedures contained in the Organic Hydrocarbon Law, the granting in
Concession for gas transport, condensate transport and gas distribution by pipeline network, may
be effected in accordance with the procedures contained in the Single Revised Text.
In the respective contracts, should establish promotion measures to the Initial Consumers.
Article 6.- Guarantees for investment in Main Network projects.
6.1. Main Network projects awarded under the procedures set out in the Single Revised
Text may include a mechanism to ensure adequate annual incomes that reward adequately the
Cost of Service to investors.
6.2. In order for a Main Network project can access to the Guarantee referred to the
preceding paragraph shall meet the following requirements:
a) That is of public use;
b) That for at least 50% (fifty per cent) of the Guaranteed Capacity of the pipelines be
designated to the Electric Generators;
c) That promotes the development of energy competence;
d) That the benefit-cost relation for electric service users that receive energy from the
electric systems where participate Electric Generators exceeds the unit.
6.3. The Ministry of Energy and Mines, at proposal from the CTE, or on its own initiative
with the favorable opinion of the CTE, will authorize the granting of the Guarantee to a particular
Main Network project that meets the above conditions.
CONCORDANCE:
S.D.Nº 057-99-EM
R. N° 187-2004-OS-CD
Article 7.- Determination of the Guarantee for the Main Network
7.1. The recovering of the Cost of Service will be guaranteed to the investors through the
annual Guaranteed Incomes.
7.2. The Guaranteed Incomes are those that ensure at least the investor of the Main
Network over time and are in function of Guaranteed Capacity and Rate Base.
7.3. The Base Rate will be determined according to the Cost of Service and the annual
Guaranteed Capacity so that the flow present value of annual income is equal to the Cost of
Service, using the discount rate and the recovery period established in the Contract.
7.4. The annual Guaranteed Income referred to in this Article shall be borne by:
a) The resources from the provision of transport service; and,
b) The Guarantee covered by electric users by charge for the Guarantee for the Main
Network referred to in subsection 7.6.
7.5. The resources from the transport service provision will be determined on the basis of
Regulated Rates and the Annual Contracted Capacities. Regulated Rates will be determined by the
CTE, in such way to assign equitably the Cost of Service between Network Users in proportion to
the Annual Contracted Capacities for each type of user, also considering what is stated in the
Contract.
7.6. The CTE will periodically incorporate in the electricity rates for the toll item of Main
Electricity Transmission System referred to the Article 59 of Law Decree N° 25844, Electric
Concessions Law, a charge that will be called Guarantee for the Main Network. This charge will
cover, if necessary, the Guaranteed Income.
CONCORDANCE:
R. N° 187-2004-OS-CD (GRP for the first year)
R. Nº 0340-2008-OS-CD (Set Rates of Camisea Main Network)
Article 8.- Of the Guarantee administrator and Beginning of the Collection
8.1. By Supreme Decree countersigned by the Minister of Energy and Mines will be
designated a company or body that will take in charge of collecting the annual amount that the CTE
sets for the purposes of make effective the Guarantee to the holder of the concession of the Main
Network subject to this Law. (*)
(*)In accordance with Article 1 of Supreme Decree N° 026-2002-EM, published on 04-09-2002, The
company Red de Energia del Peru S.A. is designated, as the company responsible for the
collection and payment of the annual amount that OSINERG sets for the purposes of make
effective the guarantee set forth in this Article.
8.2. By Supreme Decree countersigned by the Minister of Energy and Mines and at
proposal from the CTE, will establish the date to begin the collection of the Guarantee.
CONCORDANCE:
S.D. N° 046-2002-EM
8.3. The treatment of amounts collected as a result of the Guarantee as well as procedures
for collection shall be pursuant to Regulation.
Article 9.- Rate Regulation
Bids rate for the transportation and distribution of natural gas for each type of user and the
charge for Main Network Assurance shall be governed by the CTE taking into account the
provisions of this Law, the Bases, the respective Contracts, as well as complementary procedures
that established.
CONCORDANCE:
R. N° 112-2006-OS-CD (Set Rates for Camisea Main Network, between
May 1, 2006 and April 30, 2008)
R. Nº 0340-2008-OS-CD (Set Rates for Camisea Main Network)
Article 10.- Of the Regulation
By Supreme Decree countersigned by the Minister of Energy and Mines will be issued the
rules and provisions necessary to implement the provisions of this Law, within a period not
exceeding 60 (sixty) days of its validity.
CONCORDANCE:
S.D.Nº 040-99-EM (REGULATION)
Article 11.- Rules that opposed
Do not apply the rules that oppose to this Law.
SUPPLEMENTARY DISPOSITION
Single.- Extension of suspension of concessions for hydraulic stations
Extended for 12 (twelve) additional months from the publication of this Law, the provisions
of the Third Transitory Provision of the Law Nº 26980.
Communicate to the President of the Republic for its enactment.
In Lima, on the third day, of the month of June, of the year one thousand and ninety nine.
RICARDO MARCENARO FRERS
President a.i. of the Congress of the Republic
CARLOS BLANCO OROPEZA
Second Vice-president of the Congress of the Republic
TO THE CONSTITUTIONAL PRESIDENT OF THE REPUBLIC
THEREFORE:
Be published and enforced.
Issued at Government House, in Lima, on the third day of the month of June, of the year
one thousand and ninety nine.
ALBERTO FUJIMORI FUJIMORI
Constitutional President of the Republic
VICTOR JOY WAY ROJAS
President of Council of Ministers
DANIEL HOKAMA TOKASHIKI
Minister of Energy and Mines