Beyond power producers: Peru’s other natural gas offtakers

Peru’s electricity generators are the principal users of natural gas from Camisea block 88, the country’s main gas contributor and production from which goes to domestic consumption.

In the third quarter, power producers accounted for nearly 70% of offtake from the acreage, according to energy and mining investment regulator Osinergmin.

The sector’s use in 3Q23 was 583Mf3/d (16.5Mm3/d), which went to Empresa de Generación Eléctrica del Sur, Enel Generación Perú, Fénix Power Perú, Kallpa Generación, Sulpay Energía and Termochilca.

Numbers from hydrocarbons licensing authority Perupetro show that block 88, in the Amazon area of Cusco region, has averaged 24Mm3/d (million cubic meters per day) this year or 60% of total output.

Transportadora de Gas del Perú (TGP) transports the hydrocarbon to the coast via pipeline.

Dispatch to industrial clients and vehicular natural gas follows, with these segments representing 17% (143Mf3/d) and 9% (72Mf3/d), respectively.

Customers with block 88 gas supply contracts include mass consumption, B2B and aquaculture conglomerate Alicorp, glass packaging company Owens-Illinois, Unión Andina de Cementos Lima (Unacem), Cerámica Lima, Cerámica San Lorenzo, Sudamericana de Fibras (SDF) and personal healthcare group Softys.

The other industrial consumers are Energigas, Gas Ya, Grifos Espinoza, Limagas, Refinería La Pampilla, Servicentro Aguki and Shell GNL.

In the case of Shell GNL, it trucks LNG from the Melchorita liquefaction plant to distributor Gases del Pacífico (Quavii) and national oil company Petroperú, the latter of which is temporarily operating the Sur Oeste concession.

Meanwhile, shipments to residential and commercial clients accounted for 5% (41Mf3/d) in July-September.

These customers are supplied by gas distributors Cálidda and Contugas which serve Lima and Ica, respectively.

Procuring gas in Peru depends on consumer category, with qualification as an independent offtaker starting at 30,000m3/d which allows direct negotiation with the gas producer, while regulated users – those that consume less than 30,000m3/d – must sign contracts with distributors.

Firm transport capacity contracted with TGP by offtake segment (Source: Osinergmin)