Southern Peru Gas Pipeline

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This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

The Southern Gas Pipeline, commonly known as Integrated Gas Transportation System - Southern Zone of Peru or by its Spanish names SIT Gas, Sistema Integrado de Transporte de Gas al Sur, Gasoducto Interior or Gasoducto del Sur, is a proposed Peruvian pipeline designed to transport natural gas from the Camisea gas fields in the upper Amazon basin to Peru's Pacific coast.


Starting at the Malvinas separation plant in the Camisea gas fields north of Cusco, the proposed pipeline would span roughly 1100 kilometers, crossing the Andes and passing through the Cusco, Apurímac, Arequipa and Moquegua regions en route to power plants at Mollendo and Ilo on Peru's southern Pacific coast, then continuing south and southeast to the regions of Tacna and Puno on Peru's southern border with Chile and Bolivia.[1][2][3][4][5]

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Project Details


As early as 2008, companies began proposing the construction of a trans-Andean gas pipeline linking the Camisea natural gas fields of the upper Amazon basin with cities and power plants along Peru's Pacific coast.[12]

In 2010, the Peruvian government signed an initial US$1.33 billion agreement with Kuntur Transportadora de Gas (KTG) for construction of the pipeline. However, the contract was ultimately canceled, prompting a new round of bidding for the project.[13]

In July 2014, the Peruvian government signed a new $7 billion, 34-year agreement for construction of the pipeline with the Consorcio Gasoducto Sur del Perú, a consortium made up of the Brazilian firm Odebrecht (75% stake) and the Spanish company Enagás (25% stake). The agreement gave Enagás responsibility for operating and maintaining the pipeline, while Odebrecht was to be in charge of EPC (engineering, procurement and construction).[14][15]

In September 2015, with the pipeline 34% complete, the Peruvian company Graña y Montero paid US$215 million to acquire a 20% stake in the consortium from Oderbrecht. At this point, construction work on the pipeline was still scheduled for completion by 2017. However, the project ran into a serious roadblock in March 2016 when Oderbrecht's CEO Marcelo Odebrecht was sentenced to 19 years in jail for his role in a major bribery scandal. Banks threatened to cut off funding for the Southern Gas Pipeline as long as Odebrecht remained part of the project[16], but attempts to find a replacement under the existing contract were ultimately fruitless, with American energy giant Sempra and Italian-Argentine conglomerate Techint pulling out of negotiations in November 2016.[17]

Cancellation of contract with Odebrecht

In January 2017, the Peruvian government announced that it would cancel its pipeline contract with Odebrecht, Enagás, and Graña y Montero due to the consortium's inability to meet funding requirements for the project.[18] The government signaled its intention to solicit new bids for completion of the project, but the exact timeline remained unclear, with media sources reporting that it would take at least a year to find new partners and negotiate terms for a revived pipeline deal.[13][19]

In November 2017, Peru's Minister of Energy and Mines, Cayetana Aljovín, announced that new bidding for the Southern Gas Pipeline project would be delayed until late 2018, prompting some analysts to question whether the project would actually be revived.[20] Aljovín indicated that future contracts for the pipeline will be co-financed by the Peruvian government and will no longer rely on subsidies from utility bill surcharges, noting that the pipeline's exact route and design may change as a result of these financing changes.[21] In December 2017, Alberto Ñecco, executive director of ProInversión, a government agency promoting private investment in Peru, confirmed that renewed bidding for the Southern Gas Pipeline was still on the table for 2018 and that both European and American companies continue to express interest in the project.[22] In January 2019 Peru's Minister of Energy and Mines, Francisco Ísmodes, affirmed that the project was still being pursued.[23]

As of October 2022, legal proceedings regarding potential bribery by Odebrecht, Graña y Montero, and other actors remain ongoing.[24][25][26][27][28][29]

Efforts to revive the project

In early 2020, several news reports suggested that the project might be revived, pending the expected March 2020 release of a feasibility study by the Mott MacDonald consultancy exploring financing options for the pipeline.[2] In March 2020, Cusco's regional governor Jean Paul Benavente called on Peruvian president Martín Vizcarra to uphold his promise to resurrect the pipeline and make it operational within the first half of 2022.[30] In July 2020, Peruvian lawmakers called for the proposed pipeline to be extended south to Puno, on Peru's southeastern border with Bolivia.[31]

In September 2020, following release of Mott MacDonald's feasibility study, which estimated a price tag of US$4.5 billion for the revamped SIT Gas project, Peru's Ministry of Energy Mines (MINEM) announced that the pipeline's scope would be expanded to include the southern regions of Apurímac, Puno and Tacna, in addition to the previously announced regions of Cusco, Arequipa and Moquegua. Vice Minister of Hydrocarbons Víctor Murillo indicated that the government would hold a tender for development rights to the project in the first half of 2021, with the goal of awarding a contract by July 2021 and bringing the new pipeline fully online by 2025 or 2026.[5][9] As of October 2020, MINEM official Miguel Incháustegui reported that the government was conducting a 35-year assessment of Peru's available natural gas reserves as a prelude to launching the tender in early 2021.[32]

As of July 2021, Peru's incoming president Pedro Castillo was expected to announce the restart of work on the pipeline.[33] In October 2021, the president of Castillo's ministerial council confirmed the government's intention to relaunch the project.[34]

In November 2021, President Pedro Castillo authorized a transfer of an additional 29 million Peruvian soles for "improvements to the country's energy security and development of the South Peruvian Gas Pipeline"; critics see this as the Peruvian people paying to care for a pipeline abandoned by Odebrecht, which doesn't work until the government can secure a new bidder to complete the project.[35]

In January 2022, a government commission called for construction of the pipeline to begin in the second half of 2023, with commercial operations to follow progressively from north to south between 2024 and 2026.[10] The commission noted that the project could be expedited by reusing pipe and other engineering infrastructure from Odebrecht's original project, while relying on Odebrecht's original environmental impact study rather than requiring a new one.[11][36]

In February 2022, Russia's invasion of Ukraine prompted renewed focus on Peru's role as an exporter of natural gas to Europe. In an interview with the Peruvian business journal Gestión, Peru's former Vice Minister of Hydrocarbons Victor Murillo cited reactivation of the Southern Peru Gas Pipeline project as key to increasing the country's export potential, noting that excess production from Peru's existing Block 56 and Block 57 could potentially be supplemented by new production in Block 58.[37]

In April 2022, Peru's Minister of Energy and Mines, Carlos Palacios, announced plans to form a working group aimed at reactivating the Southern Peru Gas Pipeline, while declaring a state of emergency that would provide the government with the necessary legal mechanisms to ensure the project's completion.[7]

In July 2022, a legislative initiative proposed the expansion of the pipeline further south, to Apurímac, Cusco, Puno, Arequipa, Moquegua y Tacna, as a public necessity, and the project was again discussed in a meeting between Peruvian governors Germán Alejo Apaza and Kimmerlee Gutiérrez.[38][39]

In January 2023, Peru's Minister of Energy and Mines, Óscar Vera, announced that the government was committed to reactivating and completing the pipeline project, though he did not offer a timeline or other details.[40] Mr Vera noted that several private companies had expressed interest in building the pipeline.[41] Investment cost for the project was estimated at 4 billion Peruvian soles.[42] Over the next several months, the government authorized the transfer of millions of soles to cover the costs of maintaining and preserving the existing pipeline infrastructure abandoned by Odebrecht.[43][44]

In February 2023, the government announced plans to solicit bids from interested companies through a tender process to be held within the next three months.[45] As of March 2023, the proposed tender had been postponed until the second half of the year.[46] In May 2023, US-based Energy Transfer Partners expressed interest in developing the pipeline, noting that it planned to send a delegation to Peru to discuss the project with the Peruvian private investment agency, Proinversión.[47]

Articles and resources


  1. "Gasoducto Sur Peruano" (PDF). Proinversión.{{cite web}}: CS1 maint: url-status (link)
  2. 2.0 2.1 2.2 "¿En qué situación está el Gasoducto Sur Peruano?". América Noticias. February 16, 2020.{{cite web}}: CS1 maint: url-status (link)
  3. "Gasoducto del Sur irá a nuevas manos tras anularse contrato con GSP", Perú21, 24 de enero de 2017
  4. "Desbloqueo del gasoducto sur peruano". La Prensa Regional. May 13, 2019.
  5. 5.0 5.1 5.2 "Minem retoma gasoducto del sur: costará US$4.500 millones y arrancará en 2025 o 2026". El Comercio Perú. September 16, 2020.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 "Ochoa: Petroperú se puede hacer cargo del Gasoducto Sur Peruano". Nacional. August 11, 2021.
  7. 7.0 7.1 7.2 "Minem pedirá a Perupetro evaluar renegociación de contrato sobre gas de Camisea". El Peruano. April 22, 2022.{{cite web}}: CS1 maint: url-status (link)
  8. "Minem: SIT Gas (Gasoducto Sur Peruano) se concesionará el 2024 y llegará hasta Tacna". Revista Energia y Negocios (in español). September 17, 2020.{{cite web}}: CS1 maint: url-status (link)
  9. 9.0 9.1 "Se pretende otorgar la buena pro del gasoducto del sur antes de 28 de julio -". Revista Minería y Energía (in español). September 21, 2020. Retrieved 2021-04-15.{{cite web}}: CS1 maint: url-status (link)
  10. 10.0 10.1 "Gobierno propone que SIT-Gas se inicie en el 2023". La República. January 23, 2022.{{cite web}}: CS1 maint: url-status (link)
  11. 11.0 11.1 "Gobierno propone que construcción de gasoducto sur inicie en el segundo semestre del 2023". La República. January 22, 2022.{{cite web}}: CS1 maint: url-status (link)
  12. "Companies propose pipelines in southern Peru", Reuters, April 11, 2008
  13. 13.0 13.1 "El 'caso Odebrecht' paraliza la construcción del mayor gasoducto de Perú". El País. February 2, 2017.
  14. "El consorcio formado por Enagás y Odebrecht, adjudicatario del Gasoducto del Sur Peruano", Enagás press release, July 1, 2014
  15. "Pipeline Could Allow Peru to Sell Energy to Chile". Peruvian Times. July 8, 2014. Retrieved 2020-10-28.{{cite web}}: CS1 maint: url-status (link)
  16. "Gasoducto: La problemática en el megaproyecto de gas peruano", El Comercio, November 27, 2016
  17. "Gasoducto Sur Peruano: consorcio Sempra-Techint no comprará acciones de Odebrecht", Semana Económica, November 23, 2016
  18. "Caso Gasoducto Sur Peruano - IDEHPUCP". IDEHPUCP (Instituto de Democracía y Derechos Humanos de la Pontificia Universidad Católica del Perú). Retrieved 2021-04-15.
  19. "Peru scraps Southern Gas Pipeline contract in Odebrecht fallout", Peru Reports, January 23, 2017
  20. "Cayetana Aljovín afirma que Gasoducto Sur Peruano sí va", El Comercio, November 13, 2017
  21. "Cayetana Aljovín: "El gasoducto tiene que costar menos"", Perú21, November 13, 2017
  22. "ProInversión: Empresas europeas y americanas interesadas adjudicarse el Gasoducto Sur Peruano", Gestión, December 19, 2017
  23. Trazo de gasoducto desde Camisea hacia el sur del país se conocerá este año, Diario Correo, Jan. 12, 2019
  24. "Peru: Odebrecht allegedly paid bribes for Southern Gas Pipeline". Convoca. 26 June 2019. Retrieved 7 October 2022.
  25. "Procuraduría solicita que se incluya a consorcio en investigación por el Gasoducto Sur Peruano". RPP Noticias. 10 febrero 2020. Retrieved 7 October 2022. {{cite news}}: Check date values in: |date= (help)
  26. "Gasoducto Sur Peruano: Estudio Echecopar es incluido en proceso penal para asumir eventual reparación civil". RPP Noticias. 5 julio 2022. Retrieved 7 October 2022. {{cite news}}: Check date values in: |date= (help)
  27. "Fiscalía aclara que acuerdo de colaboración eficaz con hermanos José y Hernando Graña no ha sido rechazado". RPP Noticias. 24 septiembre 2022. Retrieved 7 October 2022. {{cite news}}: Check date values in: |date= (help)
  28. "Lava Jato: La Disputa Millonaria del Estudio Echecopar por el Caso Gasoducto". Convoca. 26 September 2022. Retrieved 7 October 2022.
  29. "Caso Gasoducto Sur Peruano: Poder Judicial anuló fallo que declaró a Procuraduría Ah Hoc para casos Odebrecht y Lava Jato como "parte agraviada"". RPP Noticias. 1 octubre 2022. Retrieved 7 octubre 2022. {{cite news}}: Check date values in: |access-date= and |date= (help)
  30. "Cusco: Informe de Mott MacDonald permitirá licitar gasoducto del sur". La República (in español). March 12, 2020.
  31. "Peruvian legislators push for wider gas pipeline footprint". BNamericas. Retrieved 2020-10-21.{{cite web}}: CS1 maint: url-status (link)
  32. "Minem alista certificación de reservas para licitar gasoducto del sur en primera mitad del 2021". Gestión Economía. October 5, 2020.{{cite web}}: CS1 maint: url-status (link)
  33. Redacción LR (2021-07-10). "Reinicio del gasoducto del sur" (in español). Retrieved 2021-07-14.
  34. "Gobierno de Castillo culminará el proyecto del gasoducto del sur". Gestión. October 25, 2021.{{cite web}}: CS1 maint: url-status (link)
  35. "Transfieren más de S/ 29 millones adicionales para mantener el Gasoducto Sur abandonado por Odebrecht". La Republica. November 11, 2021. Retrieved December 15, 2021.{{cite web}}: CS1 maint: url-status (link)
  36. "Futuro de Gasoducto Sur (SITGAS): Aumentan Costos De Mantenimiento". MacroALIANZA / YouTube. May 13, 2022.{{cite web}}: CS1 maint: url-status (link)
  37. "Reactivar el Gasoducto del Sur en Perú: clave ante posibilidad de abastecer el mercado europeo". Minería & Energía. February 25, 2022.{{cite web}}: CS1 maint: url-status (link)
  38. Orihuela Q., Roberth (31 July 2022). "Congreso impulsa proyecto para llevar gas natural al sur". La República. Retrieved 7 October 2022.
  39. Mamani, Elmer (23 July 2022). "Arequipa y Puno se unen para traer gas boliviano al sur del país". La República. Retrieved 28 October 2022.
  40. "Gobierno buscará reactivar el proyecto Gasoducto del Sur". La República - Economía. January 11, 2023.
  41. Esteban Salazar (January 16, 2023). "Minem ya maneja propuestas del sector privado para ejecutar el Gasoducto Sur Peruano". La República.
  42. Sandra Ferrándiz (January 13, 2023). "Masificación del gas natural en 7 regiones se retoma". :La República.
  43. "Gasoducto Sur Peruano: destinan S/55 millones adicionales para cuidar los tubos de Odebrecht". La República - Economía. January 12, 2023.
  44. Hernán Torres (April 4, 2023). "Autorizan transferencia de más de S/31 millones para preservar bienes del exproyecto Gasoducto Sur". La República.
  45. "Minem planea licitar construcción del Gasoducto del Sur Peruano dentro de tres meses". La República. February 17, 2023.{{cite web}}: CS1 maint: url-status (link)
  46. "Gasoducto Sur: Licitación se convocaría en el segundo semestre del 2023". Rumbo Minero. March 9, 2023.{{cite web}}: CS1 maint: url-status (link)
  47. Esteban Salazar (May 15, 2023). "Energy Transfer confirma interés para asumir la construcción del Gasoducto del Sur". La República.

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