Peru LNG Chief Warns Gas Potential Remains Untapped Despite Strategic Role in Energy Security

Solange Cuadros, general manager of Peru LNG, stated that natural gas will remain a fundamental pillar for Peru’s development over the next decade, serving as the country’s primary energy source while playing a key role in the energy trilemma of security, affordability and environmental sustainability. The executive emphasized that gas enables cost reduction across industry, electricity generation and household consumption, directly impacting productivity and economic growth. In a global context marked by volatility, domestic reliable and affordable energy represents a strategic advantage that cannot be taken for granted, according to Cuadros.

Despite these advantages, Peru has not established the enabling conditions, long-term vision or clear energy decisions necessary to drive investment and nationwide gas deployment. The gap in gas distribution outside the capital region represents a significant missed opportunity for the country to leverage its natural resources for broader economic development. Gas also functions as an ally in energy transition by allowing greater renewable integration while providing backup to the electrical system, enabling progress toward a cleaner energy matrix without compromising reliability.

The assessment comes as Peru’s energy sector navigates multiple challenges. ProInversión projects a self-sustaining Petroperú by 2032 through reorganization measures, with initial asset blocks scheduled for approval in July through specific promotion plans. The state oil company plans to evaluate disposition of non-essential real estate assets including recreational clubs, beach houses and corporate headquarters in Lima’s San Isidro district. Meanwhile, Peru’s crude oil production continues declining due to structural problems affecting exploration, investment and new project development, with a tax royalty system characterized as disincentivizing further activity. PetroTal seeks to exceed 20,000 barrels per day in the near term as operators attempt to reverse production trends. Primax strengthened its compressed natural gas network with a new station in Chilca targeting growing demand from heavy and light vehicle fleets.