Three bidders shortlisted for Peruvian gas pipeline concession

Proinversión, Peru’s private investment promotion agency, has announced that three firms have been qualified for the  600,000 Mcf/d Southern Andean Gas Pipeline project.

The companies that have been shortlisted are the following:

• The consortium Gasoducto Sur Peruano, made up of Odebrecht and Enagas
• The consortium Gasoducto Peruano del Sur, made up of GDF Suez, Sempra, Techint and TGI;
• US natural gas pipeline operator Energy Transfer.

The deadline to submit proposals is June 26th, 2014. The contract is scheduled to be awarded June 30.

The total investment is estimated at US$4 billion.

The contract involves the design, financing, construction and maintenance of a 1,085-km, 32-inch pipeline from the Camisea gas fields through the southern Andes to the port of Ilo. The new gas pipeline will supply to two 500MW power plants and potential petrochemical projects including by the US' CF Industries, Australia's Orica, Brazil's Braskem and Sigdo Koppers of Chile.

The project is part of the US$20 billion in investment commitments in Peru's energy industry over the next decade.