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Peru LNG plant's operations and exports suspended due to burst pipeline

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LNG Industry,

Reuters are reporting that operations have been suspended at Peru’s sole LNG plant because of a lack of supply caused by a 3 February pipeline rupture, choking off exports.

The pipeline, which transports fuel from the Camisea gas fields in the Peruvian jungle to the Pacific Coast, burst because of a landslide amid heavy rains in the Cusco region.

A source at Peru LNG – the consortium that operates Peru’s LNG plant consisting of South Korea’s SK, the US’ Hunt Oil and Japan’s Marubeni Corp – said the plant was not operating due to a lack of supply as a result of the pipeline rupture.

Government data show no natural gas shipment has left Peru since 5 February, when the Barcelona Knutsen left the Pampa Melchorita export terminal for Spain carrying 115 521 m3 of LNG. Normally, the Peru LNG consortium exports five or six shipments of about 150 000 m3 each a month.

Repair work on the pipeline is “very advanced” and shipments to the Peru LNG’s plant on the coast could resume by the end of the week.

The Camisea fields, which form Peru’s largest natural gas reserves, are operated by Argentine oil company Pluspetrol. The pipelines that transport the output have suffered various bursts and spills since operations began in 2004.

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