CONSULADO GENERAL DEL PERU
5177 Richmond Ave. Ofic. 695
Houston, Texas 77056
El Consulado General del Perú, continuando con su labor de promoción comercial, hace llegar adjunto al presente, la Nota de Prensa (en castellano e inglés) referida a la inauguración de la primera planta de licuefacción de gas de Sudamérica, en Pampa Melchorita, a 170 kilómetros al sur de Lima-Perú.
Esperando que dicha información sea de su interés, mucho se agradecerá tenga a bien disponer que se difunda la misma entre los miembros de la Cámara de Comercio que usted dirige.
Carlos Polo Castañeda
Cónsul General del Perú en Houston
OPENING PERU LNG LIQUEFACTION PLANT
It is well known, last June 10th the President of Peru, Dr. Alan Garcia Perez, together with the Chairman of Repsol, Antonio Brufau, opened the first gas liquefaction plant in South America, Pampa Melchorita, 170 km south of Lima.
The liquefaction plant is operated by Peru LNG consortium, led by the U.S. Hunt Oil (50%), and which also includes Repsol-YPF (20%), South Korea’s SK Energy (20%) and Japan’s Marubeni (10%). With a total investment of US$ 3,800 million (including financing costs), the Project is the largest foreign direct investment made in the history of Peru. It represents an opportunity for sustained economic growth of our country and third ones, and reaffirms the reputation of Peru as a prosperous and secure country for foreign investment.
The Peru LNG project comprises a 408 km pipeline from Chiquintirca in Ayacucho through Huancavelica, Ica and Lima to get to km 170 of the Southern Panamericana Highway. It is estimated that once the project is operational, this will generate US$ 1,700 million annually in foreign exchange for Peru and the Peruvian government will receive approximately US $ 310 million annually in indirect taxes and royalties in the next 18 years.
The project provides, for the exclusive commercialization by Repsol, the entire production of the plant, according to the contract with Peru LNG will last 18 years since its entry into commercial operation. For its size, it is the largest acquisition by Repsol LNG in its history. Additionally, Repsol has a contract to supply liquefied natural gas (LNG) to the natural gas terminal in the port of Manzanillo on the Pacific coast of Mexico. The contract includes the supply of LNG to the Mexican plant for a period of 15 years, with an estimated value of 15,000 million dollars and a volume of more than 67 bcm (billion cubic meters), equivalent to nearly double Spain’s annual consumption.
Peru LNG said that -during the construction of the plant- has developed different social and environmental projects in the area with more than 20,000 families who have participated in programs to improve agricultural skills and strengthening of small and medium enterprises in the area, among others.
It should be noted according to a report by Hunt Oil Company, “Of the 192 member countries of the United Nations, only 17 have been able to develop its own LNG project, however, this number is already outdated and with the opening of Peru LNG´s Project, Peru will join this select list of countries, becoming the number 18”.
Given the magnitude of the project and the quality of the investment of such renowned international companies, this opening is an endorsement of the Peruvian legal framework and tangible proof of the confidence of foreign direct investment in the country, which will surely stimulate new investments -especially in hydrocarbons- and will achieve the objectives of generating employment, reducing poverty and protecting the environment.