Peru Promotes Use of Compressed Natural Gas in Several Cities

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--The Peruvian government's program to expand the use of compressed natural gas is expected to benefit several designated cities. Known as the "Masificación del Uso de Gas Natural," the program will be implemented in the cities of Abancay, Andahuaylas, Huamanga, Huanta, Huancavelica, Huancayo, Jauja, Cusco, Juliaca and Puno.

In July 2013, the Peruvian government awarded Grana y Montero S.A. (Lima, Peru) a 10-year contract to develop the design, financing, construction, operation and maintenance of the natural gas program.

The project includes the installation of a compressor station in the city of Ayacuco, as well as the construction of seven substations to provide natural gas for vehicles, and the provision of natural gas supply trucks.

Grana y Montero Petrolera finished the detailed engineering phase of the program and awarded IGAS (Belo Horizonte, Brazil) the contract to build the compressor station. Construction began this month and will continue through August. The compressor station project includes the installation of two 1,500-HP MX 1000 Galileo motocompressors, driven by Caterpillar (NYSE:CAT) (Peoria, Illinois) G3516 engines.

Compania Operadora de Gas del Amazonas COGA (Lima, Peru) will develop a grassroot natural gas pipeline to connect the existing Camisea Pipeline with the compressor station in Ayacucho. The 22-kilometer pipeline will be 14 inches in diameter and will have a capacity of 150,000 standard cubic feet per day. Under the project schedule, a pipeline contractor will be selected in July, with construction kick-off in December. The pipeline would be operational by April 2015.

Also, Peru's Ministry of Energy and Mines, in conjunction with COGA, plans to install a 180-kilometer, 14-inch-diameter pipeline from the compressor station to Huancayo city in 2015.

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