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Peru to limit LNG for export

LNG Industry,

Alan Garcia, Peru’s President, signed a decree last week that earmarks all the natural gas from block 88 in the Camisea field for domestic use only. The decree authorises government officials to negotiate with the Pluspetrol-led consortium to guarantee that gas used for export comes form the smaller neighbouring block 56.

The decree reverses an earlier decree in 2006, which allowed natural gas from block 88 to be used for export if more reserves were not found in block 56.

It is believed however, that there is enough gas in block 56 to last for at least 10 years. A consortium led by Hunt Oil has an agreement with Peruvian government to export 4.2 trillion ft3 over the next 20 years. Government officials have been keen to point out that they can still meet this obligation and maintain domestic supply. The consortium has no plans to tap block 88 for at least five years though.

This government decree has no doubt come about because of protests in the south of the country over the export of LNG out of the country.

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