The Peruvian government, under the leadership of President Ollanta Humala Tasso, is moving toward closing a deal with global energy company Repsol, that will see southern regions of Peru supplied with natural gas via a virtual pipeline, reports Andina. The deal is expected to lower the cost of compressed natural gas (CNG) for drivers of natural gas vehicles (NGVs) as well as provide security of supply. The virtual pipeline transportation system will utilize specially designed tankers to carry liquefied natural gas (LNG) from the Melchorita liquefaction plant 170 kilometers to the south.
State-owned oil company Petroleos del Peru, or Petroperu, signed the agreement with Spanish oil company Repsol YPF SA in November, to distribute natural gas from the Camisea fields. At that time the companies formalized their intention to implement an efficient system for distributing LNG to small cities spread out across the mountainous region of south Peru. Currently, gas from the Camisea fields is mainly distributed in central Peru.
The system designers are seeking to identify the demand and the infrastructure needed to supply LNG to the south and also the requirements to dispense the gas as CNG.
Confirming the availability of supply in a discussion session of Peru’s Congress , Jose Robles Freyre, director of the Directorate General of Hydrocarbons of the Ministry of Energy and Mines, said that gas production block 88 (Camisea) will be used entirely for domestic consumption. Legislator De la Torre also commented that there are other blocks, such as 57 and 58 operated by Repsol and Petrobras, respectively to ensure Camisea gas production for many years for the whole country.