• Practice
  • Experience

Our practice in the hydrocarbons sector targets downstream natural gas activities (transportation, distribution and marketing) and the contractual and administrative relations between the concessionaires and the final users of natural gas.

We advise National Government Agencies on the design and promotion of concessions for transportation and for distribution via pipelines and systems and virtual gas pipelines and on proposals for regulatory changes, in order to update the existing framework to accommodate these businesses.

We advise final users on how to obtain natural gas supply and transportation contracts, through either direct negotiation or competitive bidding, as well as the permits and licenses needed for the construction and operation of the plants that use this fuel.

We handle inquiries from both the Government and final clients about the interpretation and application of natural gas regulations and offer legal representation for settling disputes through arbitration or by administrative means.

We help concessionaires with the regulatory procedures for setting rates for public oil and gas transportation services.

Hydrocarbons have become the second most important sector for our law firm, after electric power.  Over the past four years, our Working Group has handled a large number of cases involving hydrocarbons that have built up our experience and knowledge of the industry.   Furthermore, we have a small number of clients involved in gas production, all of them located on Peru’s northern coast.

It should be noted that there has been an important alignment in Peru between the prices and regulation of natural gas and those of electric power.  Because of its wide experience in the electric power sector, the  Santiváñez Law Firm has taken on much more business (contracts, regulation, disputes)  in areas where the legislation governing the electric power sector overlaps with that of the natural gas sector.

Gas Purchase Agreements

  • Counseling in the negotiation between EGESUR and the Camisea and Pluspetrol Consortium of an Agreement for the Purchase of Block 88 Natural Gas. EGESUR is one of the country’s most important government electric power generation corporations.
  • Counseling in the signing of a transfer agreement whereby Sudamericana de Fibras granted SDF Energía up to a maximum of 136 Mm3-day of gas, to be delivered by Pluspetrol and the Consortium for Block 88 to Sudamericana de Fibras. The transaction was carried out under the new secondary gas market regulations.  At present, SDF Energía is executing a project to install a co-generation (combined thermal energy and electric power production as an integral part of its production activity) plant, which, when finished, will help supply electric power to 100,000 families.

Gas Transportation Agreements

  • Counseling of Fenix Power, Egesur and Cementos Lima at the start of the fifteenth part of the Transportadora de Gas del Perú (TGP)’s competitive bidding process for  gas transportation (construction process), in this case for raising the gas transportation capacity  to some 390 MMCFD. All of our clients were winners in the process and up to 84 MMCFD were awarded.

Fenix Power has important electric power generation projects under way, such as the installation of a 540 MW combined cycle gas-fired electric power generation plant.  Cementos Lima, which started operating in 1916, for its part, is the country’s largest and most important cement producer.

  • Counseling in the transfer to SDF Energía of 118 MMCD of the gas transportation capacity contracted for by Sudamericana de Fibras from Transportadora de Gas del Perú (TGP). The transaction was structured under the new secondary gas market regulations.

Public-Private Partnerships for the Development of the Gas Industry

  • We designed and gave the Government ongoing support in the studies and competitive bidding processes for the concessioning of natural gas service distribution in the Department of Ica.  This concession has already started commercial operations, which are expected to result in major residential penetration, an important objective that failed to be accomplished in the Department of Lima.
  • We gave Proinversión full legal counseling in the design and structuring of international infrastructure bidding competitions, with a view to guaranteeing the construction, operation and maintenance of the following projects:

o   Natural Gas Distribution:

Development of the natural gas distribution network for the supply of the country’s nineteen largest cities (on both the coast and other regions of the country). The approximate investment involved is US$ 200 million, which is expected to be forthcoming in mid 2013.

o   LNG reserve:

Development of storage systems for LNG (liquefied natural gas) as a reserve supply for generation plants.  The investment was calculated at between US$ 200 and 400 million.  The final delivery of that investment is scheduled for year-end 2012.


Reports and counseling on the regulation of the natural gas market for different private and government corporations, as well as government institutions, including the Ministry of Energy and Mines.

© Santivañez Abogados
República de Panamá 3461 Of. 901
San isidro Lima 15046 Perú
t. +51 (1) 202 8000
f. +51 (1) 202 8017
Los Tamarindos 274 Urb. 4 de Enero
Piura - Piura
t. +51 (73) 32 6994
f. +51 (73) 31 3192
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