Priority is given to the production of urea and other fertilizers for the benefit of national agriculture.
The Peruvian Executive Branch has established special measures to promote the development of the petrochemical industry, within the framework of the legislative powers granted by the Congress of the Republic.
Through Legislative Decree No. 1686, published today in the official newspaper El Peruano , the promotion and development of the petrochemical industry will be encouraged through the approval of special measures that provide facilities for the implementation and operation of petrochemical plants.
These measures prioritize the production of urea and other fertilizers for the benefit of national agriculture, as well as seeking to guarantee the supply of natural gas and obtain a competitive final price.
The provisions of this standard are applicable to investors who develop petrochemical projects in accordance with the framework of current legislation; public sector entities at all levels responsible for granting permits and authorizations for the development of the aforementioned projects, and companies involved in the production, transportation of natural gas by pipeline and distribution of natural gas by pipeline network.
Permits, authorizations and licenses
Building permits required for petrochemical plants are processed and executed once the installations of the complexes with sectoral authorization have been completed.
Authorizations issued by Osinergmin (basic petrochemicals) and the Ministry of Production (intermediate and final petrochemicals) for the implementation and/or operation of petrochemical plants are issued within a period of no more than 30 business days from the date of submission of the application, without prejudice to the period granted to applicants to correct observations, as well as the prior requirements and other obligations established in the current sector regulations.
In cases where there are projects involving basic petrochemicals, intermediate petrochemicals and final petrochemicals in a single petrochemical complex, the entity competent to issue sectoral authorizations is Osinergmin, in coordination with the Ministry of Production, within the scope of its powers.
The issuance of the Certificate of Nonexistence of Archaeological Remains (CIRA) by the Ministry of Culture is issued within a maximum period of 10 business days, subject to the rules of positive administrative silence, after providing the period to correct observations.
The authorization of the Archaeological Evaluation Project (PEA) by the Ministry of Culture is issued within a maximum period of 15 business days, subject to the rules of positive administrative silence, after providing the period to correct observations.
The citizen participation plan submitted prior to the preparation of the corresponding environmental impact study for petrochemical projects must in all cases be evaluated and approved, if applicable, by the competent environmental authority within a maximum period of 15 business days, counting from the day after it was admitted for processing. This period includes both the formulation and the lifting of observations, as appropriate.
The competent sectoral authority and the environmental authority shall prepare a work plan that allows, once the environmental impact study has been submitted, its evaluation within shorter periods, previously agreed upon by said authorities. These periods are applicable to the aforementioned evaluation without prejudice to the provisions of the general or regulatory standard.
Natural gas
The State, through Perupetro and the Ministry of Energy and Mines, within the framework of promoting the development of the petrochemical industry, promotes the adoption of measures to ensure the establishment and/or continuity of the technical and economic conditions for the supply of natural gas for the total period required for the operation of the petrochemical industry plants.
Holders of licence contracts for the exploration and exploitation of natural gas, signed or to be signed, and provided that this does not affect their economic and financial sustainability, may grant maximum prices for natural gas at the wellhead consumed by the petrochemical industry, under competitive conditions that allow its adequate use for the petrochemical industry.
Price adjustment formulas and/or specific or different promotional measures may also be agreed upon.
The natural gas pipeline transportation concessionaire company may apply discounts to the natural gas transportation service intended for the petrochemical industry.
This legislative decree indicates that priority will be given to the installation and operation of petrochemical plants that guarantee the production of urea and other fertilizers to supply national agriculture at competitive prices.
