PERU · NATURAL GAS
Key Facts
- —The country Peru, a Pacific copper producer that gets 95% of its gas from the Camisea fields.
- —Why it matters A Colombian gas group says regulator decisions will decide whether four Peru gas projects get built.
- —Why now Promigas Peru presented its 2026 gas report on Thursday 22 October, with a government gas deal due in November.
- —What happened Promigas said four planned gas projects, the largest a US$2.1 billion pipeline, depend on clearer regulatory signals.
- —The numbers New gas connections fell to 147,000 in 2025 from 279,000 in 2024, a drop of 47%.
- —What it means for you Investors in Peruvian energy see tariff risk, and a treaty case against Peru pending in Washington.
- —Still open Whether the government signs the Cálidda addendum in November and changes the tariff rules Promigas disputes.
- —Power Index Peru ranks 5th of 14 in The Rio Times Latin America Power Index, with 54.7 points (October 2026 edition).
Colombian gas group Promigas says four planned Peru gas projects, including a pipeline of about US$2.1 billion, will go ahead only if regulators send clearer signals, Gestión of Lima reported on 23 October 2026. The warning matters to US investors because Promigas is already pursuing a tariff dispute against Peru at ICSID, the World Bank’s investment arbitration centre in Washington.
Promigas Perú, the group’s Peruvian arm, released its report on the national gas sector on Thursday 22 October 2026, Andina reported. Its financial vice president, Aquiles Mercado, said that reaching 25% of the population does not mean Peru’s gas rollout has matured.
We have covered the group before, when it warned that Colombia’s own gas deficit is now structural. Our Promigas company profile gives the background on the group, and this article covers only its Peruvian business.
In plain English
- Promigas: a Colombian gas group that runs gas networks in northern Peru under the Quavii brand.
- Osinergmin: the Peruvian regulator that sets gas tariffs and decides which investments companies may recover.
- Cálidda: the company that distributes gas in Lima and Callao and wants to extend its network to seven regions.
- ICSID: a World Bank arbitration centre in Washington where investors can sue governments.
Peru Gas Projects Depend on Regulatory Signals
Mercado said that carrying out the four projects depends on regulatory signals that make them viable, Gestión reported. If regulatory uncertainty continues, he warned, investor confidence would erode and the projects could stay on paper even if they are well supported.
Promigas alleges the tariff process was arbitrary, and the report asks for three fixes aimed at Osinergmin. It proposes public consultation on the method Osinergmin uses to forecast gas demand, a gradual move to the first regulated tariff and an independent technical body to review disagreements with the regulator.
Why Gas Connections Slowed in 2025
Over five years, gas connections in Peru doubled from 1.2 million to 2.6 million, and coverage rose from 14% to 25% of the population, so one in four Peruvians now has gas. Infobae puts the end-2025 total at 2.59 million.
The pace slowed sharply, however, with 147,000 new users joining in 2025 against 279,000 in 2024 and 288,000 in 2023. That is a drop of 47.3% from 2024 and 49.0% from 2023, matching the percentages Gestión printed.
Promigas blames two causes, tariff decisions by Osinergmin that it says froze investment and the suspension of Bonogas, a subsidy that helps households pay for connections. Bonogas is paid from the FISE energy inclusion fund, which Infobae says financed 94,000 connections in 2025, down from 241,000 a year earlier.
In its first tariff review for 2025 to 2028, Promigas says, Osinergmin did not recognise 45% of the efficient investment it had already made, which forced it to slow expansion. Osinergmin’s side of that review was not in the coverage we reviewed.
The Four Projects and Their Costs
Gestión names the four projects as the Cálidda expansion, a pipeline extension by Transportadora de Gas del Perú (TGP), a regional pipeline to Cusco and a new distribution concession in the south-west. Mercado said investors are interested in all four Peru gas projects and that together they would bring gas to more than 1.5 million Peruvians.
The Four Projects
- Cálidda expansion: about US$600 million, 15 towns in seven central and southern regions, more than 200,000 users and the same tariff as Lima.
- TGP pipeline extension: about US$2.1 billion, still under review by the Energy Ministry.
- Cusco regional pipeline: still at the profile-study stage, amount not confirmed.
- South-west distribution concession: to be awarded by the state investment agency ProInversión in 2028, amount not confirmed.
The Cálidda deal is the most advanced, and Gestión said on 23 October that Energy Minister Guillermo Shinno now expects the contract addendum to be settled in November at the latest, after review by the economy ministry. Signing had been planned for mid-October and did not happen.
Shinno has acknowledged differences with Osinergmin over how investments and the net book value of assets are recognised. A taxpayers’ group, the Asociación de Contribuyentes, cited an Osinergmin report in saying the expansion could cost the state and taxpayers about US$1.83 billion in present value, a claim Andina relayed on 16 October that we have not verified.
The Tariff Fight Behind the Warning
Promigas runs the Quavii gas concessions in northern Peru, covering Áncash, La Libertad, Lambayeque and Cajamarca through Gases del Pacífico and Piura through Gasnorp, Infobae reported. Its dispute with Osinergmin centres on the tariff for those concessions.
After the original tariff set by ProInversión expired, Osinergmin published a new one on 27 December 2024 and answered the company’s appeal on 5 March 2025. It recognised an end-user price of US$14.66 per million BTU, a standard unit of gas energy, of which US$8.7 covers distribution and virtual transport, below the US$12 set in the concession contract, Gestión reported.
Promigas says that price ignores efficient investments already made, and it asked ICSID to open arbitration under the 2007 Colombia-Peru investment treaty. ICSID’s secretary-general registered the request on 13 July 2026, and its case page lists the case as pending.
The case page names the New York firm Debevoise & Plimpton for Promigas and Baker Botts, for Peru’s side. Talks with the state have not closed, Gestión said, and Promigas could leave the case if the new government settles.
A separate fight concerns Law 32315, published on 30 April 2025, which created a levelled national gas tariff to narrow the price gap between Lima and the regions. It limits the benefit to users consuming up to 50,000 cubic metres a month, instead of the 900,000 in the government’s original proposal, and it still lacks implementing rules, Infobae reported.
Promigas wants the 900,000 limit restored so that big industries, shops and gas stations can act as anchor customers that help pay for regional networks. The taxpayers’ group counters that the roughly 1% of large users consume almost four times as much as the other 99%, so including them would multiply the subsidy.
Gas Supply Is Also Tight
Camisea supplies 95% of Peru’s gas, and no exploration well has been drilled there since 2017 because contract terms would not let firms recover new investment, according to the report as relayed by Gestión and Andina. Proven reserves would last only about 13 years, a figure Shinno repeated on 23 October.
Infobae added that exploration spending fell 75% to US$9.8 million in 2025, with no exploratory wells and no seismic work. A pipeline incident on 1 March 2026 cut Lima’s supply by about 90%, which the report says shows the need for LNG storage and regasification.
What It Means for You
For US investors and lenders behind Peru gas projects, the case shows how a tariff decision can become a treaty claim heard in Washington. It is one company’s view, however, and the regulator’s side was not in the coverage we reviewed.
For people living or investing outside Lima, the outcome decides whether piped gas arrives and at what price, with the Cálidda deal promising Lima’s tariff to 15 towns. That is why the tariff rules matter to households as well as investors.
Our guides Peru Natural Resources Explained 2026 and Who Dominates Peru, Elites and Regions Explained show where the gas comes from and who holds power over it. Our Lima city guide covers the capital.
What Is Not Known
We could not open the Promigas report because the group’s website blocked our access, so every figure rests on Gestión, Andina and Infobae, which agree on the main numbers. Andina is Peru’s state news agency, so we used it only to confirm what Promigas said.
Gestión’s headline puts the four projects at US$3.94 billion but prints US$236 million for each of the last two, which with US$600 million and US$2.1 billion adds to only US$3.17 billion, so we give no total. We also could not confirm Osinergmin’s response, or how Bonogas was suspended when Infobae says it financed 94,000 connections in 2025.
It is not known whether the Cálidda addendum will be signed in November, whether Osinergmin will change its tariffs or how the arbitration will end. No prediction market on these questions was found.
Frequently Asked Questions
Who is Promigas and why is it in Peru?
Promigas is a Colombian gas group whose Peruvian arm runs the Quavii concessions in the north. It is also in arbitration against Peru over its tariff.
What did Promigas say on 22 October?
It said four gas projects, including a US$600 million Cálidda expansion and a pipeline of about US$2.1 billion, depend on clear regulatory signals. It also said new connections fell to 147,000 in 2025 from 279,000 in 2024.
What is the Cálidda seven-region project?
It would extend Cálidda’s gas network from Lima to 15 towns in seven regions for about US$600 million, at Lima’s tariff. The energy minister expects the contract addendum to be settled by November.
Is Peru running out of gas?
Proven reserves would last about 13 years, and no exploration well has been drilled at Camisea since 2017, according to the report. The report urges new exploration and LNG storage projects.
What does Promigas want changed?
It wants consultation on the regulator’s demand forecasts, a gradual first tariff, an independent review body and a higher 900,000 cubic metre limit in Law 32315. Osinergmin’s reply was not available.
Sources: Gestión, 23 October 2026; Andina, 22 October 2026; Infobae Peru, 23 October 2026; Gestión, 23 October 2026 (Energy Ministry timetable); Andina, 16 October 2026 (Asociación de Contribuyentes); Gestión, 29 July 2026 (tariff chronology); ICSID case page ARB/26/32; Semana Económica, 22 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error