Peru Builds 1st LNG Facility in S. America for $3.8B

On June 10th the first natural gas liquefaction plant in South America was officially inaugurated. At US $3.8 billion in investment, PERU LNG represents the largest investment in one single project ever made in Peru.

Melchorita Plant is located at km. 170 of the South Pan American Highway.

The start of operations at Melchorita launches Peru into a new era, one in which the high level of investor confidence and legal and economic stability act as a magnet for mega investment projects. The startup of PERU LNG represents the opportunity to continue the current economic growth trend and reassert the country's reputation as a thriving and safe destination for investment.

As a result of this project, Peru's gross domestic product expanded 2% during the construction phase (2006-2010) and over 30,000 jobs were generated. Looking forward, forecasts predict that the Peruvian State will receive approximately US $310 million a year due to the Project.

The Melchorita Plant will produce liquefied natural gas (LNG) through a purification and cooling process which will reduce the gas volume by 600 times, which facilitates its storage and transport. The plant has a nominal capacity of 4.4 million tons per year and will process 620 MMcfd of natural gas.

In addition, at the plant site are the two largest storage tanks in Peru (each stores 130,000 m3 of LNG) and a marine terminal that stretches more than 1 kilometer long and will receive tankers of 90,000 to 173,000 m3 each.

The Melchorita Plant is the result of a decade of planning and development, which includes the installation of important pipeline infrastructure that will also serve the Peruvian market. Thanks to an agreement signed with TGP and recently approved by the Ministry of Energy and Mines, the PERU LNG pipeline will provide up to 550 MMcfd of transport capacity for the Peruvian market.