Camisea project gains more time for rights-of-way

Oct. 30, 2002
The Peruvian government authorized Transportadora de Gas del Peru (TGP), the Camisea downstream consortium, to extend for another 18 months negotiations for right-of-way on pipeline routes

By an OGJ correspondent

LIMA, Oct. 30 -- The Peruvian government authorized Transportadora de Gas del Peru (TGP), the Camisea downstream consortium, to extend for another 18 months negotiations for right-of-way on pipeline routes in the Camisea project.

The original build, own, operate, and transfer (BOOT) concession called for ROWs to be established by Dec. 9, 2001—a year after the $1.3 billion Camisea contract was signed. The date, however, has already been extended twice, mainly due to detours required around unexpected archeological ruins or for geologic, environmental, or other reasons (OGJ Online, Apr. 1, 2002).

A government official said that the negotiations are a legal process to reach agreement on prices and would not delay pipeline work, which is already under way.

Camisea's BOOT concession commits it to complete the project by August 2004. TGP said that the pipelines are being built in different phases and it expects these to be ready in first quarter 2004.

TGP has reached an agreement with the ministry of agriculture's special land titling project (PETT) to identify land rights along the pipeline routes. The ministry expects this to take as long as a year.

The natural gas line will extend 697 km over the Andes Mountains, down to the south coast and then north to Lima. The liquids pipeline will extend 575 km to the fractionation plant on the south coast.

A public hearing, organized by international nongovernmental organizations, was held Oct. 24 in Washington, DC. At the meeting were reported to be a delegation from the ministry of Jaime Quijandria, energy and mines minister; energy regulator Osinerg; Inrena, the national institute for natural resources; and representatives of the Camisea companies.

Quijandria said they would try to satisfy all queries regarding the project and assure everybody that Camisea is being strictly monitored on environmental matters.