Peru becomes the energy leader in the region.
The start-up of the PERU LNG plant also includes the commencement of operations of a 408-kilometer pipeline and a marine terminal.
On June 10, 2010, the first natural gas liquefaction plant in South America was officially inaugurated. With an investment of US$ 3.8 billion, PERU LNG represents the largest investment in a single project in the history of Peru.
The start of operations at the PERU LNG plant marks Peru's entry into a new era, in which strong investor confidence and the country's legal and economic stability act as a magnet to attract mega investment projects. The start-up of PERU LNG represents an opportunity to continue the current economic growth trend and reaffirm the country's good name as a prosperous and safe investment destination.
As a result of this project, Peru's gross domestic product grew by 2% during the construction phase (2006-2010) and more than 30,000 jobs were generated. The plant will produce liquefied natural gas (LNG) through a purification and cooling process that will reduce the volume of the gas by up to 600 times, which facilitates its storage and transportation. The plant has a nominal capacity of 4.4 million tons per year and will process 620 mmpcd of natural gas.
The plant also houses the two largest gas storage tanks in Peru (each with a storage capacity of 130,000 m3 of LNG) and a marine terminal of more than 1 kilometer in length with the capacity to receive methane tankers from 90,000 to 173,000 m3.
The PERU NG plant is the result of a decade of planning and development that also included the construction of a major gas pipeline, which will be used in part to meet the needs of the Peruvian market. Thanks to a contract signed with TGP and recently approved by the Ministry of Energy and Mines, the PERU LNG pipeline will provide a transportation capacity of up to 550 mmpcd of natural gas for Peruvian consumption, which will help solve the problem of transporting natural gas to supply electricity generating companies, industrial companies, natural gas vehicles and Peruvian households that use this energy resource.
The Consortium
The PERU LNG consortium is made up of four world-class energy companies: Hunt Oil Company of the United States, with a 50% share; SK Energy of South Korea, with 20%; Repsol of Spain, also with 20%; and Marubeni Corporation of Japan, with 10%. This consortium was formed specifically to develop, build and operate the PERU LNG project. To make this project a reality, several experienced construction contractors were involved, such as: Chicago Bridge & Iron (CB&I), which was in charge of the engineering, procurement and construction (EPC) activities for the plant; the CDB consortium, which was in charge of the engineering, procurement and construction (EPC) activities for the offshore facilities; and Techint, which was in charge of the installation of the gas pipeline. Several Peruvian companies also contributed to this project, including Graña y Montero, Cosapi, Translei, Minera San Martín, Cosmos, Aceros Arequipa, Técnicas Metálicas, Esmetal and Sima, among others.
PERU LNG has US$2.25 billion in financing from international entities and private Peruvian institutions. International financing came from the Inter-American Development Bank (IDB), the World Bank's International Finance Corporation (IFC), the Export-Import Bank of the United States, the Export-Import Bank of Korea, the Italian Export Credit Agency (SACE), Société Générale, BBVA, Calyon, Sumimoto, ING, Mizuho, and the Bank of Tokyo-Mitsubishi. In addition, the company successfully placed US$ 200 million in bonds in the local market. Shareholders made a capital contribution of US$ 1.6 billion. In addition to providing financial support, these institutions also permanently audit PERU LNG's social and environmental performance.
Environmental and Social Responsibility
During the construction phase (2006-2010), approximately US$20 million was invested in social and environmental programs in which the highest national and international standards have been applied to ensure exemplary performance and fulfill the project's commitment to respect the environment and local culture in all activities.
More than 20,000 families have benefited from the wide range of social responsibility programs developed by PERU LNG. As part of this commitment, exemplary programs have been developed, including the Allin Minkay project, which promotes agricultural competitiveness in the Andes, and the ForPyme project, which strengthens small and medium enterprises on the coast.
In addition, far-reaching environmental programs have been developed along the pipeline route and near the plant. These biodiversity and conservation programs not only meet but exceed the highest national and international environmental standards.
