Two consortia bid for Peru’s southern gas pipeline

Proinversión, Peru’s private investment promotion agency, has announced that two out of the three shortlisted bidders have submitted proposals for the 600,000 Mcf/d Southern Andean Gas Pipeline project.

The two consortium that have bid for the project are the following:

• The consortium Gasoducto Sur Peruano, made up of Odebrecht and Enagas; and
• The consortium Gasoducto Peruano del Sur, made up of GDF Suez, Sempra, Techint and TGI.

US natural gas pipeline operator Energy Transfer was shortlisted but did not submit any proposal.

It is expected that ProInversion releases the results of the evaluations of the technical requirements, opens the economic bids and awards the project concession on June 30 2014.

The total investment is estimated at US$4 billion.

The contract involves the design, financing, construction and maintenance of a 1,085-km, 32-inch pipeline from the Camisea gas fields through the southern Andes to the port of Ilo. The new gas pipeline will supply to two 500MW power plants and potential petrochemical projects including by the US’ CF Industries, Australia’s Orica, Brazil’s Braskem and Sigdo Koppers of Chile.

The project is part of the US$20 billion in investment commitments in Peru’s energy industry over the next decade.