Peru Okays $3.8B LNG Project's Main Pipeline

The 408km, 34-inch diameter pipeline will run from Ayacucho department to the project's future liquefaction plant in the Pampa Melchorita area south of Lima, the country's official gazette reported. The pipeline capacity will be 667Mf3/d (18.9Mm3/d), the gazette said.

Peru's national port authority APN earlier this month authorized the consortium to use an area in Lima department to build the project's maritime terminal. The project aims to convert Camisea gas from block 56 to LNG for export, primarily for the US and Mexican markets. It also entails a gas-processing plant in Amazonian town Malvinas, LPG/condensate separation facilities in Pisco and pipelines.

Earlier this year, Peru LNG awarded US firm Chicago Bridge & Iron an EPC contract worth more than US$1.5bn for the 4.4Mt/y LNG plant. US company Hunt Oil holds a 50% interest in the consortium, South Korea's SK Corporation 30% and Spain's Repsol YPF (NYSE: REP) 20%.

Peru LNG did not immediately respond to a BNamericas project update request.

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