Through a relevant information communication, Graña y Montero Group has indicated that Sempra has informed its decision not to proceed with the purchase of shares in the Odebrecht Group’s Southern Gas Pipeline project (GSP).
As a result of this decision, the current partners of GSP – Enagás Internacional and Graña y Montero – along with the companies of the Techint Group are now working on alternatives that will allow the project to be carried out in the short-term.
It was indicated that if the project may not be made feasible and, as a consequence, the government decided to terminate the concession contract. Such contract provides a termination payment mechanism, which, among others, would be destined to the recovery of the amount invested by the Graña y Montero Group in the project.
In September 2015, Graña y Montero agreed to acquire 20% of the share capital of the GSP concessionaire, with an investment of US$ 215 million. This reflected a clear sign of confidence in and a commitment to Peru’s energy development.
“We continue to believe that the GSP, is a vital project for Peru and of which we will feel very proud when it is completed, as we will contribute with our work to the development and growth of Southern Peru,” commented Mario Alvarado Pflucker, CEO of Graña y Montero Group.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/24112016/sempra-sets-back-southern-gas-pipeline-project/