Clean Energy del Perú will build the country’s second LNG plant, which will be located in Tumbes and take advantage of the existence of large volumes of gas in that department’s onshore and offshore lots. The initial capacity of the liquefaction unit will be 12 million cubic feet per day (MMcfd) of gas, though the overall design is 24 MMcfd. The facility is expected to begin operations in early 2017.
The project will supply LNG to the industries of the north of Peru, in a radius of 1,000 km, “which includes the city of Cajamarca,” said Walter Cornejo, director of Clean Energy del Perú.
Investment involves around US$ 75 million, which includes the installation of a liquefaction plant and several regasification units, located in strategic places, to convert the hydrocarbon to a gaseous state. The supply will come initially from Lot XXIII, which Upland Oil & Gas (Clean Energy’s sister company) recently acquired from BPZ Energy. The lot is currently in advanced stages of exploration and will begin commercial production in the coming months.
Another project planned in Tumbes is the gas distribution through pipelines, which will begin in April. Clean Energy del Perú estimated that at that time the government would grant the concession. “The Ministry of Energy and Mining already gave us the go ahead and we just need to Osinergmin approve the tariffs,” Cornejo said. The company plans to connect 20,000 households in Tumbes.
It is worth noting that in Peru there is only one LNG plant, Melchorita, whose production (620 MMcfd) is entirely for export, except for a small volume (20 MMcfd) that will support projects aimed at the widespread use of gas natural in the north and south. So Clean Energy’s new plant will be the first of its kind to allocate its entire production for domestic consumption of LNG.