Energy Secretary Reforms Ministerial Agreement SEN-001-2020
Karla Núñez, Associate at ARIAS Honduras and expert in Hydrocarbons, shares this article on the recent reform of Ministerial Agreement SEN-001-2020, through which the Secretary of State for Energy updates the regulatory provisions on the import, refining, distribution, storage, and marketing of hydrocarbons and their derivatives.
The original agreement (published in La Gaceta on January 29, 2020) created the regulatory framework for the entire marketing chain and reactivated the Administrative Commission for the Purchase, Sale, and Marketing of Petroleum and its Derivatives (CAP) as the body responsible for permits, registrations, and control. It defines figures (wholesalers, resellers, terminals, stations, transporters, etc.), procedures, and prohibitions (e.g., selling/buying from unregistered parties).
Main reforms
1) 2022 Reform - SEN-119-2022 (published on August 30, 2022)
The original agreement (published in La Gaceta on January 29, 2020) created the regulatory framework for the entire marketing chain and reactivated the Administrative Commission for the Purchase, Sale, and Marketing of Petroleum and its Derivatives (CAP) as the body responsible for permits, registrations, and control. It defines figures (wholesalers, resellers, terminals, stations, transporters, etc.), procedures, and prohibitions (e.g., selling/buying from unregistered parties).
Main reforms
1) 2022 Reform - SEN-119-2022 (published on August 30, 2022)
- Updates definitions and requirements adds the concept of "public project”; deletes and reforms several sections of legal/technical requirements for different entities (Articles 5, 7, 10, 12, among others).
- Objective: to simplify and clarify documentary and technical requirements for registrations and permits.
2) 2025 Reform - SEN-060-2025
- Issued: July 17, 2025 Official publication: Official Gazette No. 36,927 of August 27, 2025.
- Core of the reform:
- Art. 2 (Definitions) - expanded: incorporates modern definitions for the natural gas chain and new infrastructure, for example:
- Floating Storage Unit (FSU) and Floating Storage and Regasification Unit (FSRU), requiring authorization from the Merchant Marine and coordination with SEN.
- NG Distributor and LNG Distributor.
- NGV service stations, and definitions of NG, LNG, and NGV.
- Art. 2 (Definitions) - expanded: incorporates modern definitions for the natural gas chain and new infrastructure, for example:
- Art. 10 – amended: adjustments to requirements/procedures for permits (related to the updating of definitions and administrative simplification).
- Safety and minimum distances: sets technical requirements and safety distances for new stations (including NGV stations) and construction guidelines.
- Vehicular LPG: prohibits the sale of vehicular LPG at liquid fuel stations (with specific exceptions).
- Repeal: repeals Article 38 of SEN-001-2020.
What changes in practice?
- Natural gas in the chain: LNG/NG/NGV is enabled/regulated more clearly, including specific actors (distributors) and stations, and the possibility of FSU/FSRU as part of terminals. This impacts import, regasification, and distribution projects.
- Clearer permits and procedures: requirements (technical and legal documents, plans, certifications) and procedures for the registration and operation of wholesalers, resellers, stations, and terminals are updated.
Quick timeline
- January 29, 2020: Publication of SEN-001-2020 (comprehensive framework and reactivation of the CAP).
- August 30, 2022: SEN-119-2022 reforms definitions and various requirements/provisions.
- 08/27/2025 (issued 07/17/2025): SEN-060-2025 expands definitions (NG/LNG/NGV, FSU/FSRU), adjusts Article 10, sets safety distances, repeals Article 38, and limits vehicular LPG at liquid stations.
For compliance (basic checklist)
- Verify your status (wholesaler, reseller, station, terminal, carrier, NG/LNG distributor). Adjust your registration to the current definitions.
- Permits: check whether your permit is governed by the amended Article 10 and whether it requires additional/updated documentation.
- Design/new works: apply distances and safety measures for stations (especially CNG).
- Vehicular LPG: if you operate liquid fuel stations, make sure you do not sell vehicular LPG (except for express exceptions).
The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.