Peru scraps gas pipeline project
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The Government of Peru has cancelled Odebrecht contract to develop the Southern Gas Pipeline (GSP) after the consortium failed to meet its financing deadline.
Odebrecht SA, led the consortium with a 55% stake. Enagas SA held 25% and Grupo Grana y Montero 20%.
A group of 22 banks had refused to provide more funds until Odebrecht sold its 55% stake in the project, which the company failed to do after Sempra Energy, in November 2016, withdrew from negotiations.
In late December 2016, Odebrecht announced advanced talks on selling its majority stake in a US$4-billion natural gas pipeline project in Peru to Canada’s Brookfield Asset Management Inc. However, negotiations appear to have not succeed.
The project involves the construction and subsequent operation and maintenance of a 1,000-km-long gas pipeline, which is key for safeguarding supply in Peru. The pipeline will transport 800 MMcfd of natural gas from Camisea across the Andes to the Pacific coast.