Natural gas: Minem and Proinversión sign agreement to expand the network in Arequipa, Moquegua and Tacna

Natural gas: Minem and Proinversión sign agreement to expand the network in Arequipa, Moquegua and Tacna

The Private Investment Promotion Agency (Proinvestment) and the Ministry of Energy and Mines (Minem) signed this Monday, November 13, the agreement for the development of the project ‘Furtherification of natural gas use – Distribution of natural gas through a pipeline network in the regions of Arequipa, Moquegua and Tacna’ and thus provide clean and economical energy to these three regions.

The event took place at the Government Palace with the participation of the President of the Republic, Dina Boluarte; the Minister of Economy and Finance, Alex Contreras; the head of Energy and Mines, Oscar Vera; and the executive director of Proinversión, José Salardi.

With the signing of the agreement, Proinversión will develop the technical studies, the evaluation report and the project promotion process, so that it can be executed through the Public-Private Partnerships modality. (APP).

The Minister of Economy and Finance (MEF), Alex Contreras, maintained that the signed agreement will allow the development of the pending studies to award this project, so that the connections of natural gas networks in the south of the country continue to expand. “The massification of Camisea gas is an important step that will allow gas to be brought to more families, based on the contribution of private investment. The goal is the entire south, Arequipa, Moquegua and Tacna are the beginning of a broader strategy that will change the face of the country”, he commented.

Likewise, the head of the MEF highlighted that in the first 11 months of the year (2023) The record of PPP project awards in the last five years has been broken, with 14 projects for approximately US$2.3 billions. “With this project (of massification) we seek to continue along that line of bringing private capital that will improve the living conditions of the citizens of the south,” he added.

For his part, the executive director of Proinversión, Jose Salardiexpressed that the signing of this agreement is extremely important due to the positive impact that will be obtained in the south of the country, where hundreds of thousands of Peruvians will benefit from the arrival of natural gas because it will improve their productivity, competitiveness and quality of life.

The official reiterated his institution’s commitment to continue promoting PPP projects. “For next year we have a great challenge as a Government to seek a historical record in Public-Private Partnership awards for close to US$8,000 million,” he pointed out.

For his part, the Minister of Energy and Mines, Oscar Vera, pointed out that, to begin a new stage of expansion of the use of natural gas, which has been a long-awaited desire of the population, they have been commissioned to make possible the construction of more than 1,098 kilometers of new natural gas networks with public investment. , in order to increasingly serve the distribution of this energy and reach more than 11 regions of the country, with an investment of S/329 million. “In that case, we seek to extend the construction of natural gas networks towards the south-west concession, which involves the regions of Arequipa, Moquegua and Tacna with an initial goal of 150 kilometers to reach 12,118 new users in these regions,” express.

Currently, the project called ‘Natural gas distribution system through pipeline network of the South West Concession’ is under the provisional administration of the company Petroperú, after the expiration of the concession between Naturgy Perú SAC and Naturgy Perú SAC was declared in December 2020. Minem faced with the impossibility of continuing with the provision of the public natural gas distribution service through a pipeline network in Arequipa, Moquegua and Tacna.

About the project

The project ‘Massification of the use of natural gas – Distribution of natural gas through a pipeline network in the regions of Arequipa, Moquegua and Tacna’ consists of three components: i) supply of natural gas (NG), liquefied gas (LNG) and land transportation LNG; ii) district stations (LNG regasification); and iii) natural gas distribution system (construction, operation and maintenance of natural gas distribution networks (ducts) to users in said cities).

According to data from the state company Petroperú, at the end of September 2023, the natural gas concession in Arequipa, Moquegua and Tacna had 395 kilometers of networks built that allow it to serve 12,846 homes: 9,186 in Arequipa, 2,457 in Tacna, 693 in Ilo and 510 in Moquegua.

Source: Larepublica

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