Southern Peruvian natural gas pipeline project to attract US$ 4 billion investment

Southern Peru's natural gas pipeline project is set to attract a record investment of US$ 4 billion. The Southern Gas Pipeline will span over 1200 km across several regions.

Bids to be accepted in June

The pipeline project was due to be awarded in February 2014; however, the expansion of the country's pipeline infrastructure resulted in postponement of the bidding, which now is due to run on 30^th June 2014. The decision was originally scheduled for March 2013.

"The decision to delay the submission of bids was made after talking with consortiums interested in competing for the contract, as they have asked for more time in order to carry out the required studies," said Jorge Merino, Head of MEM.

"There are 12 companies actively engaged in this transparent and competitive bidding process. They are from Colombia, Brazil and Argentina, as well as from Spain and Israel". Companies from the US, Canada and China are also ready to participate in the bidding and are expected to submit their proposals in June.

Developing pipeline infrastructure

The Southern Gas Pipeline is part of a larger project to develop power generation and distribution in the country. Peru is the only sustainable source of natural gas in the South American Pacific Ocean. The project includes the construction of a natural gas pipeline from Anta to the southern coast of Peru, the reinforcement of the existing natural gas pipeline network from the Malvinas separation plant to the Chiquintirca compression plant and the construction of a natural gas and LNG line from the existing transport system to the Anta Province.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/14022014/southern_peruvian_natural_gas_pipeline_project_to_attract_us_4_billion_investment_87/