Peruvian gas pipeline to come online ahead of schedule

Peru

LIMA, January 30, 2015 – Odebrecht Latinvest executive director Jorge Barata on Thursday said that the Southern Peruvian gas pipeline would begin commercial operations in March 2017. Originally scheduled for completion in February 2019, work on the project has progressed at such a pace that the venture is now almost a full two years ahead of schedule.

Odebrecht aims to invest around $1.2 billion in the venture, borrowing the remaining $4.1 billion. He said a $600-million line of credit had already been secured, adding that 14 international banks had pledged their support for the project. The contract or the 1,000-kilometre pipeline was awarded in June 2014. Odebrecht’s junior partner in the project is Spanish gas grid operator Enagás, holding a 25-percent stake.

In a July 2014 interview, Barata said pipeline capacity would be 36 mcm (1.2 bcf) of natural gas per day. When upgraded with compressors, the conduit’s capacity could be raised to 48 mcm (1.6 bcf) per day, he added at the time.