By OGJ editors
HOUSTON, Jan. 24 -- A group led by Hunt Oil Co. has let an engineering, procurement, and construction (EPC) contract to Chicago Bridge & Iron Co. NV (CB&I) for a natural gas liquefaction plant in Peru.
The proposed plant, to be built 170 km south of Lima in Pampa Malchorita, would have a production capacity of 4.45 million tonnes/year.
As a key component in Peru's overall energy plan, the project will facilitate the export of gas for more than 2 decades, beginning in mid-2010.
Hunt estimates that Peru LNG engineering and construction will take 4 years to complete. Once in operation, Peru LNG is expected to generate revenues of about $800 million/year for exports of gas that exceeds local demand. The Peruvian government strongly supports the project, as it will be an important engine of economic growth and jobs in the South American country.
The CB&I contract is valued at more than $1.5 billion. It represents the largest portion of the total $3.8 billion project cost.
Financing for the project, which represents the largest foreign direct investment in Peru's history, is expected to come from a variety of sources, including the Inter-American Development Bank, with which Peru LNG signed an $800 million mandate letter in July 2006.
Project partners are operator Hunt Oil, SK Corp. of South Korea, and Repsol YPF SA of Spain.