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Peru LNG Terminal is an LNG export terminal in Ica, Peru.
Location
Project Details
- Operator: Hunt LNG Operating Company S.A.C.[1][2]
- Owner: Hunt Oil (50%), Shell (20%), SK (20%), Marubeni (10%)[1][2][3][4][5]
- Parent: Hunt Oil (50%), Shell (20%), SK (20%), Marubeni (10%)[1][2][3][4][5]
- Location: Pampa Melchorita, Lima, Ica, Peru
- Coordinates: -13.2451, -76.297 (exact)
- Cost: 3.8 billion USD[6]
- Capacity: 4.45 mtpa[2][3]
- Status: Operating[1][2][3]
- Type: Export[1][2][3]
- Start Year: 2010[2][3]
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
Background
Peru LNG Terminal is a LNG export terminal in Ica, Peru. The terminal is a joint venture of Hunt Oil Company of the US (50%), SK Corporation of Korea (20%), Shell (20%), and Marubeni Corporation of Japan. Spanish company Repsol used to own 20%, but its share was bought out by Shell in 2013.[7]
The LNG terminal, located at Pampa Melchorita, is said to be Peru's largest-ever project funded by direct foreign investment. It is geared to export gas in excess of domestic demand to the global market.[8][9]
The project began production in 2010 and was South America's first export LNG terminal. The terminal receives gas from the Camisea fields and has a nominal capacity of 4.5 million tons of LNG per year and a processing capacity of 0.63 bcfd. The site consists of a maritime terminal from which LNG is shipped, connected by a pipeline to TGP's Camisea Gas Pipeline, which receives gas from Peru's Camisea fields.[10] The site also contains two storage tanks with a capacity of 4.6 million cubic feet.[11]
The total investment needed for the project was $3.8 billion. Of the $3.8 billion that financed the project, $2.25 billion came from third parties such as credit agencies, commercial banks, and multilateral institutions.[11] Among the multilateral institutions, the US Export-Import Bank provided $450 million, the Inter-American Bank provided $400 million, the IFC $300 million, the Korean Export-Import Bank $300 million, and the Italy Sace Export Credit Agency $250 million. The Banco de Credito del Peru (BCP) also arranged for local bonds totaling upwards of $350 million.[12]
The construction of the project was contracted out to CB&I (Chicago Bridge and Iron)[13] and was engineered and designed by Gulf Interstate Engineering.[14]
Gas Exports
The LNG terminal shipped 32 cargoes between January and June of 2017, compared with 31 over the same period in 2016. Most ships were destined for Spain, but three also landed in Mexico, two in both France and Japan, while Taiwan, the UK, and South Korea received one each. The company's revenue doubled year over year, from $151.4 million to $303.8 million.[15] In 2016, 34 of the terminal's 71 cargoes were sent to Mexico. As the US expands its gas exports, Peru will look to increase its exports to Europe in order to compete.[16]
Controversy
Former Energy Minister Carlos Herrera has publicly criticized the LNG export project. According to Herrera, Peru did not have enough gas supplies to warrant exporting it overseas. He argued that it was political corruption which allowed for the project to commence. There was an investigation into the matter and no evidence of corruption or mismanagement was found.[17] Although there was no evidence found to support Herrera's claim, leaders from the Southern region in Peru complained that the export project would lead to shortages affecting domestic consumption.[18]
In January 2016, exports from Peru's LNG export terminal were halted due to a rupture in the pipeline supplying it with gas from the Camisea gas fields.[19]
Articles and resources
References
- ↑ 1.0 1.1 1.2 1.3 1.4 "Annual Report 2021 (p 13)" (PDF). Peru LNG. August 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 "GIIGNL Annual Report 2023 (p 59)" (PDF). GIIGNL. July 13, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 3.0 3.1 3.2 3.3 3.4 3.5 "2023 World LNG Report (p 152)". IGU. July 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 4.0 4.1 "FAQ's: What is Peru LNG?". PERU LNG. Retrieved 2022-06-08.
{{cite web}}: CS1 maint: url-status (link) - ↑ 5.0 5.1 "Nigeria, Peru, Trinidad 2021 LNG issues result in $300 million opportunity loss for Shell just in third quarter". Reuters Events. November 9, 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ "PERU LNG secures $2.25 Billion in third party financing | PERU LNG". PERU LNG (in español). Retrieved 2022-07-25.
- ↑ "Repsol sells LNG assets to Shell for $6.7 billion". Repsol. February 26, 2013.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Peru LNG Annual Report 2019 (p 32)" (PDF). Peru LNG. 2019.
{{cite web}}: CS1 maint: url-status (link) - ↑ "PERU LNG secures $2.25 Billion in third party financing". PERU LNG. June 2008.
{{cite web}}: CS1 maint: url-status (link) - ↑ Peru LNG S.R.L., BNamericas, accessed August 2017
- ↑ 11.0 11.1 Peru LNG Project, Hydrocarbons Technology, accessed August 2017
- ↑ "Business Network Forum. 18th Meeting, Iquitos- Peru, 04 March 2008 CAMISEA PROJECT. LNG Export Project". Business Network Forum / Peru LNG. March 4, 2008.
{{cite web}}: CS1 maint: url-status (link) - ↑ Peru LNG S.R.L., CBI, accessed August 2017
- ↑ "Gulf Interstate Engineering Project Resume (p 22)" (PDF). North American Pipelines. September 2010.
{{cite web}}: CS1 maint: url-status (link) - ↑ Joanna Sampson, "Peru LNG shipments rise", gasworld, August 2, 2017
- ↑ Rob Verdonck, Kelly Gilblom, "U.K. to Get First LNG From Peru While Still Waiting for U.S.", Bloomberg, February 7, 2017
- ↑ Javier Matos Flores-Guerra, "The LNG Export Debate: Lessons from Peru", Electric Power, March 3, 2014
- ↑ Peru set to export natural gas, opens LNG plant, Reuters, June 10, 2010
- ↑ Pipeline Leak Stops Peru's LNG Exports, LNG World News, accessed August 2017
