Peru eyeing inland LNG dispatch

Peru’s energy and mining investment regulator Osinergmin launched bidding to evaluate the expansion of natural gas use in the interior of the country.

The work will identify and evaluate locations that have a concentration of residential consumers that can be supplied with LNG. Results will help determine estimated investment for projects.

“Development has focused on urban centers, there are numerous provinces that have not yet been developed by concessionaires, which contain potential residential consumers concentrated in geographical areas with lower population density, but which urgently need natural gas service,” according to information from the watchdog.

Osinergmin highlighted that gas distribution concessions do not exist in the regions of Puno, Cusco, Ucayali, Ayacucho, Huancavelica, Junín, Pasco, Madre de Dios, Amazonas, San Martín, Huánuco, and Loreto.

Previous attempts to concession the service in Apurímac, Ayacucho, Huancavelica, Junín, Cusco, Puno, and Ucayali fell through to questioned financial and technical feasibility, which has led to a government push to promote gas use through region-specific initiatives.

The current concessions primarily serve the coast and are operated by Gases del Norte, Quavii, Cálidda, Contugas and Petroperú.

Cost, efficiency, reliability, and security challenges have surfaced, however, from having to truck LNG long distances, such as in the case of Quavii and Petroperú.

Procurement information for the 150-day consultancy contract is available here using number 925552 (place the number in the “Identificador Convocatoria” box after clicking on “Búsqueda Avanzada”), and in the Documents box in the upper right corner.

Also Read Peru facing new natural gas supply shortfall

Source: Osinergmin