Peru LNG Company Places $3.8 Billion Pampa Melchorita LNG Production Plant in Service

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Researched by Industrial Info Resources (Sugar Land, Texas)--Peru LNG Company has placed its Pampa Melchorita LNG production plant into service after more than three years of construction. The new natural-gas liquefaction plant is at Pampa Melchorita, on Peru's Pacific coast near San Vicente de Canete, which is about 169 kilometers south of Lima, Peru.

The facility was constructed at a capital cost of $3.8 billion and has a natural-gas inlet capacity of 620 million cubic feet per day, and a liquefaction capacity of 4.4 million tons per year of LNG. The LNG is stored in two 130,000-cubic-meter cryogenic storage tanks until it is loaded onto LNG carriers. The LNG plant takes the majority of its supply of natural gas from the newly completed 34-inch-diameter Transportadora de Gas del Peru pipeline, which runs approximately 408 kilometers from the Malvinas gas plant in Block 88.

The plant was constructed by Chicago Bridge & Iron Company NV (The Hague, Netherlands) which was awarded the engineering, procurement and construction (EPC) contract for the central LNG plant. The marine facilities EPC contract was awarded to consortium led by Saipem SpA (OTC:SAPMY) (San Donato Milanese, Italy). The marine facilities can accommodate LNG carriers ranging in size from 90,000 to 173,000 cubic meters in LNG lift capacity. Techint S.A. de CV (Buenos Aires, Argentina) was awarded the contracts for the pipeline portion of the project. The Pampa Melchorita LNG project is to the date the largest project completed in Peru and, during construction, accounted for 2% GDP growth for Peru. Now that Pampa Melchorita is operational it is estimated that the project will provide a financial benefit to the government of Peru of $310 million per year.

The Peru LNG company is a joint venture company created to build, own and operate the Peru LNG project and is owned by Hunt Oil Company (Dallas, Texas) (50%); the South Korean energy and chemical affiliate of SK Group, SK Corporation (20%), Repsol YPF (20%) and the Marubeni Corporation (10%).

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