Cusco pitched for development of petrochemical pole

A group of Peruvian legislators introduced a bill to congress to push for the development of a petrochemical project in the southern Andean region of Cusco.

The proposal would declare of public need and national interest the construction of a plant in Valle La Convención.

The lawmakers highlight that Cusco is home to the country’s principal natural gas producing area, Camisea, and its gas pipeline network, which according to the legislators would make the project feasible.

The bill has been sent to the energy and mines committee for review.

In October, the government published a legislative decree to promote the creation of a petrochemical industry, including measures to guarantee the supply of competitively priced gas.

Among the projected benefits would be a reduction in fertilizer imports, which account for around 85% of Peru’s consumption.

Much of the focus has been on the installation of a plant in the south-west of the country, with President Dina Boluarte having announced the goal of building such a complex in the area in the coming years.

However, uncertainty regarding completion of the southern zone integrated gas transport system (Sitgas) to transport Camisea gas has been a sticking point, which has led to a proposal to build a coastal gas duct.

Another potential challenge is Peru’s gas production, as forecasts estimate there are enough reserves for only another 15 years, if a substantial increase in exploration does not materialize.

The bill and legislative decree are available in the Documents box in the top-right corner of the screen.

Also read SPH: Petrochemical development in the short term will promote the mass use of natural gas and Peru petchem development: 'The moment is now'