SK Energy Sells 10% Stake in Peru LNG Project to Japanese Firm

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Researched by Industrial Info Resources (Sugar Land, Texas)--In July 2007, Peru’s Ministry of Energy launched the $3.8 billion Peru liquefied natural gas (LNG) project, which is scheduled to go into operation in 2010 to export gas from Camisea block 56. The project is in the hands of Peru LNG, a consortium formed by Hunt Oil Company (Dallas, Texas) (50%), SK Energy (30%) and the Spanish Repsol YPF (20%). It includes the construction of a natural gas pipeline, an LNG plant at Pampa Melchorita, marine export facilities and an ocean breakwater. For details, view related July 16, 2007, article - Peru’s New LNG Project

Early October, Peru’s port authority, Autoridad Portuaria Nacional (APN), approved the use of an area in Lima to build the maritime terminal. The LNG plant is already at an advanced stage of construction with several operations already completed. One of the construction goals fulfilled this month is the lower foundation for one of the two LNG storage tanks. Each of the tanks is supported by two foundations that consist of 42 concrete segments. The work teams will occupy the construction camps during the last quarter 2007. On October 5, 2007, it was announced that Techint S.A.C. (San Clemente, Pisco, Peru) was awarded the contract for the duct’s construction, which is scheduled to start in January 2008. In February and March 2007, a contract for the acquisition of 408 kilometers of pipeline was awarded to Welspun Gujarat Stahl Rohren de Dahej (Dahej, Gujarat, India). Welspun began manufacturing the high-resistance, 1.75-2.86-centimeter-thick X-70 API pipes, and the first shipments are expected to be sent from India in October and to arrive in Peru in November.. Environmental impact assessments on the project are also being conducted, and meetings are being held to incorporate various local communities in the project.

In late August 2007, it was announced that SK Energy, a subsidiary of SK Group, sold 10% of the 30% it originally held to Marubeni Corporation (Tokyo, Japan). Repsol YPF has announced that it will start exporting liquefied natural gas on the spot market between May and November 2010. Long-term sales are planned to begin in January 2011.

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