It would promote the widespread use of gas in the regions of Moquegua and Arequipa, according to ProInversión.
The Peruvian Gas Transport Company (TGP) has proposed accelerating investments of nearly US$2 billion to expand natural gas from Camisea to the south of the country, which would benefit families and industries in Moquegua and Arequipa, ProInversión said.
This is according to the scope presented by the company yesterday at the working meeting with the Ministry of Economy and Finance (MEF), the Ministry of Energy and Mines (Minem) and the Private Investment Promotion Agency-ProInversión.
Following the meeting, the Minister of Economy and Finance, José Salardi, explained that TGP's proposal is a crucial step towards the widespread use of natural gas in the country, and the dialogue with the concessionaire will allow for the advancement of investments for the extension of the gas pipeline and the expansion of the Natural Gas Transportation System.
The head of the MEF added that the project seeks to expand the Natural Gas Transportation System by 923 kilometers to the South, from the Humay (Cañete, Lima)-Mollendo sections of 689 kilometers, Mollendo-Ilo (Moquegua) of 128 km and branches towards Mollendo (16 km) and Arequipa (90 km).
As well as expanding the total capacity of the gas transportation system from 920 to 1,000 million cubic feet per day (MMPCD) through the construction of the fifth turbo compressor at the compressor plant in Chiquintirca (Ayacucho) and a new compressor plant in Melchorita, Cañete (Lima).
To this end, TGP proposed, through the signing of an addendum, to extend for 10 years the BOOT contract for the concession of Natural Gas Transportation by pipeline network from Camisea to City Gate (Ica and Lima), signed in December 2000, for 33 years.
In this regard, the executive director of ProInversión, Luis del Carpio, commented that this is an important process because the investment that is planned to be made will allow meeting the demand of the thermal power plants of the energy node in Mollendo and Ilo (Moquegua) and Arequipa, incorporating some 1,500 MW of thermal generation into the National Interconnected Electric System (SEIN).
During the meeting, Director Del Carpio, together with representatives of TGP, evaluated the possibility of expanding the supply of natural gas to the regions of Cusco and Puno, which would strengthen access to this resource in the south of the country, boosting industrial development and improving the energy competitiveness of the regions.
This step, Del Carpio added, will contribute to the country's energy security, benefiting families, industries and businesses in the south.
According to calculations made by TGP, the use of natural gas would generate savings of 39% for families, compared to alternative energy, 57% in the automotive sector and 56% in industry.
In addition, during the construction phase, the project would generate more than 20,000 direct, indirect and induced jobs; while during the operation and maintenance phase it will employ 420 workers per year.
It is worth mentioning that TGP has as shareholders the CPP Investment Board corporation of Canada, Enagás of Spain and Sonatrach of Algeria.
