Alternatives that would avoid problems in LPG trade due to port closures

The geographical location and climate change mean that the ports of Peru frequently face abnormal waves. In recent years, the number of days that ports are closed has quadrupled, according to the General Directorate of Harbor Master (Dicapi). The interruptions directly affect maritime trade and the distribution chain of various products, including fuels derived from petroleum, mainly liquefied petroleum gas (LPG).

Although about 80% of the LPG consumed in Peru comes from the Camisea Consortium and only 20% is imported, its distribution in Lima and other cities depends on maritime trade because it is transported by ship from Pisco to Callao.

In this regard, Humberto Campodónico, former president of Petroperú, points out as a possible solution to this problem the construction of a pipeline that transports LPG from Pisco to Lurín.

“With this pipeline, the problem of tidal waves and abnormal tides would end, especially for the supply of Lima,” he says.

In this sense, it refers to the fact that between 2007 and 2010 there was a private initiative of the GyM and Oiltanking consortium, which was approved during the government of Alan García, however it failed and ended up in arbitration.

”In 2011 the State resumed the project and Proinversión announced several times a public tender. The last time was in 2014, where an investment of US$ 250 million was recorded for 2,800 MT/day (70% of Lima’s demand). But there was no tender,” he adds.

According to Campodónico, the initiatives did not prosper due to the “business interests” of the Camisea Consortium.

Osinergmin’s proposal

Along these lines, the Supervisory Agency for Investment in Energy and Mining (Osinergmin) presented last year to the Ministry of Energy and Mines (Minem) a proposal for a supreme decree so that LPG distribution companies have a strategic stock of fuel to guarantee supply in emergency situations. The rule proposes that all agents that sell LPG are required to maintain a minimum stock of fuel equivalent to five days of dispatch.

Data

Proposal. In 2007, the G&M Consortium and Oiltanking presented the “Pisco-Lurín Polyduct Project” for the pipeline transportation of LPG from Camisea to Lima from a pumping station located in Pisco.

Budget. The initiative required an investment of US$ 70 million 260,281. It did not prosper and ended in arbitration.

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