Peru LNG Terminal
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Peru LNG Terminal is an LNG export terminal in Ica, Peru.
Contents
Location
Project Details
- Parent: Hunt Oil (50%), Shell (20%), SK (20%), Marubeni (10%)
- Location: Pampa Melchorita, Lima, Ica, Peru
- Coordinates: -13.2451, -76.297 (exact)
- Capacity: 4.4 mtpa, 0.63 bcfd
- Status: Operating
- Type: Export
- Start Year: 2010
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
Background
Peru LNG Terminal is a LNG export terminal in Ica, Peru.[1] The terminal is a joint venture of Hunt Oil Company of the US (50%), SK Corporation of Korea (20%), Shell (20%), and Marubeni Corporation of Japan. Spanish company Repsol used to own 20%, but its share was bought out by Shell in 2013.[2]
The LNG terminal, located at Pampa Melchorita and said to be Peru's largest infrastructure project, is geared to take gas which exceeds domestic demand and export it to the global market.[3]
The project began production in 2010 and was South America's first export LNG terminal. The terminal receives gas from the Camisea fields and has a nominal capacity of 4.5 million tons of LNG per year and a processing capacity of 0.63 bcfd. The site consists of a maritime terminal from which LNG is shipped, along with a 408 km pipeline connecting it to the TgP(Transportada de Gas Del Peru) pipeline, which receives gas from the mountains of Ayacucho.[4] The site also contains two storage tanks with a capacity of 4.6 million cubic feet.[5]
The total investment needed for the project was $3.8 billion. Of the $3.8 billion that financed the project, $2.25 billion came from third parties such as credit agencies, commercial banks, and multilateral institutions.[6] Among the multilateral institutions, the US Export-Import Bank provided $450 million, the Inter-American Bank provided $400 million, the IFC $300 million, the Korean Export-Import Bank $300 million, and the Italy Sace Export Credit Agency $250 million. The Banco de Credito del Peru (BCP) also arranged for local bond upward to $350 million.[7]
The construction of the project was contracted out to CB&I(Chicago Bridge and Iron)[8] and was engineered and designed by Gulf Interstate Engineering.[9]
Gas Exports
The LNG terminal has shipped 32 cargoes from January to June of 2017, one more cargo ship than 2016 at the same time. Most of the cargo ships landed in Spain, but three also landed in Mexico, two in both France and Japan, while Taiwan, the UK, and South Korea received one each. The company's revenue doubled from last year, from $151.4 million to $303.8 million.[10] In 2016, 34 of its 71 cargoes were sent to Mexico. As the US expands its gas exports, Peru will look to increase its exports to Europe and elsewhere in the future in order to compete.[11]
Controversy
Former Energy Minister, Carlos Herrera, had publicly criticized the LNG export project. According to Herrera, Peru did not have enough gas supplies to warrant exporting it overseas. He argued that it was political corruption which allowed for the project to commence. There was an investigation into the matter and no evidence of corruption or mismanagement was found.[12] Although there was no evidence found to support Herrera's claim, leaders from the Southern region in Peru complained that the export project would lead to shortages for domestic consumption[13]
In January 2016, exports from Peru's LNG export terminal were halted due to a rupture from a key pipeline supplying it with gas from the Camisea gas fields.[14]
Articles and resources
References
- ↑ Peru LNG Terminal, Wikipedia, accessed April 2017
- ↑ Per LNG Terminal, A Barrel Full, accessed August 2017
- ↑ Gulf Interstate Case History, Gulf Interstate Engineering Company, accessed August 2017
- ↑ Peru LNG S.R.L., BNamericas, accessed August 2017
- ↑ Peru LNG Project, Hydrocarbons Technology, accessed August 2017
- ↑ Peru LNG Project, Hydrocarbons Technology, accessed August 2017
- ↑ Camisea Project/LNG Export Project, Business Network Forum, accessed August 2017
- ↑ Peru LNG S.R.L., CBI, accessed August 2017
- ↑ Gulf Interstate Case History, Gulf Interstate Engineering Company, accessed August 2017
- ↑ Joanna Sampson, "Peru LNG shipments rise", gasworld, August 2, 2017
- ↑ Rob Verdonck, Kelly Gilblom, "U.K. to Get First LNG From Peru While Still Waiting for U.S.", Bloomberg, February 7, 2017
- ↑ Javier Matos Flores-Guerra, "The LNG Export Debate: Lessons from Peru", Electric Power, March 3, 2014
- ↑ Peru set to export natural gas, opens LNG plant, Reuters, June 10, 2010
- ↑ Pipeline Leak Stops Peru's LNG Exports, LNG World News, accessed August 2017
