Ministry of Energy approves regulation to promote LNG in Peruvian transportation

The Ministry of Energy and Mines of Peru approved the rule that will give greater impetus to the commercialization of LNG in the transport and industrial sector.

July 16, 2021. The Ministry of Energy and Mines of Peru approved the rule that will give greater impetus to the commercialization of liquefied natural gas (LNG) in the transport and industrial sector, which will contribute to the economic reactivation of the country and it will give carriers the option of having a more economical fuel compared to diesel.

Through the publication of Supreme Decree 016-2021-EM, the Ministry empowered the establishments that sell fuels to the public to have liquefaction elements and equipment, which will allow them to sell LNG for urban, interprovincial and cargo transportation. Similarly, the standard allows companies and industries, such as mining, agro-industries and others, to use natural gas for their production processes in their facilities, which points to the progressive change of the energy matrix and to reduce dependence on oil as power source.

This incentive to use LNG will also help reduce the polluting emissions released by vehicles that use traditional fuels, improving air quality through the use of natural gas as a motor fuel. Likewise, it allows transport and industry to access an efficient and cheaper resource.

On the other hand, through Vice Ministerial Resolution No. 018-2021- MINEM/VMH, the procedure was approved to execute a program to change the engine to natural gas with Euro V technology or higher, through financing that allows the repayment of the credit in a maximum term of 5 years and without interest.

This program is aimed at heavy vehicles that use diesel and will make it possible to strengthen the massification process of natural gas. This modality will be implemented initially in the cities of Lima, Ica, Arequipa and Trujillo, promoting the use of clean energy and generating savings compared to traditional fuels.

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