The number of natural gas users in Peru reached 1,555,620 at the end of 2021, an increase of 25% compared to 1,244,172 in 2020. More than 311,000 new families were connected during the last year, which represents that nearly 1,153,000 Peruvians were benefited. With this result, natural gas coverage at the national level rose to 14%, two percentage points above the previous year, according to the VII edition of the Report on the Natural Gas Sector in Peru presented by Promigas.
The growth was driven by the residential and commercial sectors, which totaled 1,554,336 clients last year, a year-on-year increase of 25%. While, industrial customers rose to 893 (+6%); NGV service stations to 344 (+2%); and power generators to 47 (+9%).
“Natural gas contributes to the reduction of poverty and inequality, and is a vehicle for social change and economic growth. It has been 18 years since the efforts for the massification of natural gas began, contributing to the development of Peru and corroborating its importance as a fundamental piece in the future goal of the energy transition process,” said the President of Promigas Juan Manuel Rojas.
“In the last five years, close to 1 million customers were connected to the natural gas service, that is, 3.7 million Peruvians from the residential and commercial sectors. The effective coverage of this service in Peru rose 8 points, reaching 14%. During this period, natural gas was brought to 8 new departments: 5 in the north and 3 in the southwest, through 3 new distribution concessions: North, Southwest and Piura,” he added.
Likewise, according to the report, the consumption of natural gas in the domestic market rose to 673 million cubic feet per day (MCFD), 21.3% higher than the 555 million in 2020. The advance was explained –mainly– by the consumption of electricity generators, which reached 419 MCFD. This figure meant 62% of the total consumption of the domestic market in 2021 and, in addition, was higher by 16% compared to the consumption of generators in 2020. For its part, the industrial sector consumed 169 MCFD of natural gas (+35 %); the CNG segment 60 MPCD (+27%); and the residential and commercial sectors 25 MCFD (+10%).
In order to accelerate the widespread use of natural gas, the report recommended adopting a series of measures such as the implementation of a levelized rate throughout the country, which applies to all concessions, or the elimination of subsidies for fossil fuels as LPG.
The report reiterated the importance and the need to expand the resources of the Energy Social Inclusion Fund (FISE), which confirmed to be a fundamental ally in the massification of natural gas during 2021, by materializing 824,794 home connections executed throughout the country thanks to its BonoGas program.
Regarding the NGV sector, in the period 2017-2021, the country had a year-on-year increase of 3% in the number of vehicles converted to natural gas. In 2021 alone, the significant figure of 20,500 vehicles was reached, making up much of the ground lost in 2020 due to the pandemic. Due to this behavior, 16 years after the first transformation, Peru registered 326,000 converted vehicles and 344 CNG filling stations in 2021.
For the end of this year, experts predict a much higher figure. In fact, as of May of this year, more than 5,000 conversions per month had already been registered. This growth is supported by BonoGas, an aid that the Energy Social Inclusion Fund (FISE) has granted to finance the vehicle transformation to CNG with low interest rates.
The report indicates that Peru must bet on natural gas, because it is a key ally in the energy transition process, since it is the energy source that generates the least greenhouse gases (GHG) for the planet. Among its main advantages are: lower CO2 emissions, and that it does not emit solid particles that pollute the air, the report specifies.
In this very promising scenario in terms of the growing adoption of natural gas, AltFuels Peru 2023 will be held from April 19 to 22, at Villa Complejo Ferial, in the city of Lima. The event will include conferences led by more than 70 speakers, experts in natural gas, alternative fuels and sustainable mobility, as well as an exhibition with more than 120 companies that will exhibit their latest generation products and services, including vehicles, engines, refueling equipment, components and conversion systems, among others. For more information, please contact info@altfuelscg.com.
Source: Promigas
