Companies propose pipelines in southern Peru
Thu Apr 10, 2008 6:37pm EDT
reuters.com
LIMA, April 10 (Reuters) - Suez Energy (LYOE.PA: Quote, Profile, Research) and Kuntur Gas Transport said on Thursday they want to build gas pipelines in southern Peru, where a booming mining sector could benefit from the proposed investments totaling about $2 billion.
Suez Energy said it has asked Peru's government for permission to construct a $1 billion pipeline of some 518 miles (834 km), stretching from the region of Ica, in southern Peru, to the city of Ilo, near the coast.
Kuntur Gas Transport said it has asked Peru's government for permission to build a $1.2 billion pipeline of some 675 miles (1,085 km) in southern Peru.
Both pipelines would be supplied by the Camisea natural gas field.
Suez Energy said its pipeline's $1 billion cost would include construction of a power plant.
Among other groups, the plant could benefit the booming mining sector in southern Peru, where major copper companies like Southern Copper (SPC.LM: Quote, Profile, Research) (PCU.N: Quote, Profile, Research) and Cerro Verde (CVE.LM: Quote, Profile, Research) operate.
"We foresee the pipeline starting its commercial operations before December 2011, but if the first stage goes quickly, it could start as early as the first half of 2011," Manlio Alessi, president of Suez Energy Peru, said in a statement.
Kuntur Gas Transport, a private company controlled by Conduit Capital Partners in the United States, also said it has asked Peru's government for permission to build a pipeline of some 675 miles (1,085 km) in southern Peru.
The proposed pipeline would also be fed from the Camisea field and serve the Andean cities of Cusco, Puno, Arequipa and Moquegua.
The company said the mining and energy ministry has 90 working days to respond to its request.
Peru, which wants to develop its natural gas industry, is working to woo foreign companies to invest in the fledging sector.
The country is the world's second-largest producer of copper. (Reporting by Marco Aquino; Writing by Dana Ford; Editing by David Gregorio) |
