In Official Register No. 62, Eighth Supplement, dated June 18, 2025, Executive Decree No. 32 of the 15th of the same month—issued by the President of the Republic—was published, enacting amendments to the General Regulations of the Organic Law on the Public Electricity Service and to the Natural Gas Operations Regulation (hereinafter, the “Regulation”). The Regulation entered into force upon its publication in the Official Register.
This bulletin outlines the main changes introduced by the Regulation to the Natural Gas Operations Regulation, as follows:
Update of Definitions
1. A definition is established for “Companies authorized to import LNG and/or CNG for self-consumption in productive processes, generation projects, and/or self-generation.”
Operating Permits and Registration or Inventory of Natural Gas Transportation Means
2. The scope of entities authorized to request operating permits and registration or inventory of natural gas transportation means is expanded to include natural persons.
Commercialization
3. In Chapter III, which regulates commercialization and storage, provisions are added regarding the import of LNG/CNG for self-consumption.
Importation
4. Requirements are established for the importation of LNG/CNG for self-consumption, including the specification of the required quantity (in mass, volume, and energy units), a conceptual description of the acquisition mechanism, the supply contract or letter of commitment, and payment of the fee to ARCH.
5. Regulations are introduced regarding the authorization procedure and modification of authorizations for the importation of LNG/CNG.
Inventory of Facilities for Natural Gas Consumption
6. Extends to authorized companies (importers) the obligation to register facilities that consume LNG/CNG with ARCH.
Suspension and Termination of the Authorization or Permit
7. Adds as grounds for ARCH to suspend the authorization or permit: the outcome of a regular or random inspection, and a final court ruling; it also clarifies that any request from a competent authority must be duly justified.
8. Includes the following grounds for the termination of the authorization or permit for the commercialization, storage, or importation of natural gas (NG): a final court ruling or duly justified request by a competent authority, breach of the commitment to use LNG/CNG for self-consumption, and other legal or regulatory causes.
Additional Provisions
9. The regulatory authority is transferred from the Ministry of Energy and Mines to the Hydrocarbons Regulation and Control Agency.
10. Legal entities domiciled or established in the country that require authorization to import LNG/CNG for self-consumption, generation, and/or self-generation will not require a joint authorization to carry out two or more natural gas-related activities.
11. Companies authorized to import LNG/CNG for self-consumption, generation, and/or self-generation are excluded from ARCH’s annual control requirements.
12. Legal entities engaged in electricity generation and/or self-generation must also comply with electricity sector regulations.
13. ARCH and ARCONEL must issue regulations to implement the provisions established in the Regulation.
14. For a period of three years, new thermal generation projects may use fossil fuels (diesel, residue, and fuel oil) without preferential conditions, provided that their generation units are capable of operating with natural gas and other liquid fuels. Thereafter, they must have either a sufficient fuel supply or adequate logistical infrastructure for transition generation, and subsequently comply with the preferential conditions established in the regulation issued by ARCONEL.
15. The Ministry of Energy and Mines (MEM) and the Ministry of Production, Foreign Trade, Investments and Fisheries (MIPRO) must adjust the regulations to include Natural Gas and hydrocarbon derivatives as a tariff subheading, considering that interested companies may carry out imports until this provision is fulfilled, provided they have obtained authorization from MEM.
For more information, please contact us at the following email addresses:
- Rafael Valdivieso: rvaldivieso@bustamantefabara.com
- Gustavo Almeida: galmeida@bustamantefabara.com
- Bruno Pesantes: bpesantes@bustamantefabara.com