Archive for the ‘Energy’ Category
Friday, February 8th, 2008
Energy Minister Juan Valdivia announced a plan to renegotiate parts of an energy contract that will export natural gas from the Camisea gas fields, located in Peru’s south-east Amazon basin and thought to hold some of the largest undeveloped gas reserves in South America. Valdivia said they will sit down with Peru LNG, the consortium responsible for the second phase of the natural gas export project, to negotiate terms that would allot part of the supply for Peru’s internal market, daily El Comercio reported.
The Camisea gas fields were originally thought to hold 10.86 trillion cubic feet, TCF, of natural gas. However in early January, the Pluspetrol oil company told Peruvian authorities the gas fields have about 20 percent more than those estimates, holding 13.40 TCF of natural gas. (more…)
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Wednesday, February 6th, 2008
The World Bank’s International Finance Corporation, IFC, approved a $300 million loan on Tuesday for Peru LNG, the second phase of the Camisea natural gas export project requiring a total investment of $3.8 billion, the largest foreign direct investment in Peru’s history. The project has already received funding from the U.S. Export – Import Bank, which approved $250 million, and the Inter-American Development Bank, which was the first bank to brush off environmental and social concerns by authorizing $400 million in December 2007.
The project will create a 253-mile pipeline and a natural gas liquefaction plant and marine loading terminal some 105-miles south of Lima on Peru’s pacific coast. The pipeline will transport natural gas from the Camisea gas fields through an existing pipeline network to the LNG plant. It is expected to generate $230 million a year in incremental royalties and $90 million in income tax revenue for Peru’s government. Most of the natural gas will be exported with markets in Mexico and possibly Chile and the United States. (more…)
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Wednesday, February 6th, 2008
The oil spill caused by explosions on a tanker off Peru’s northern coast last week is spreading south-west and affecting popular tourist sites, according to the head of Natural Resources and Environmental Management in the Tumbes Department, Augusto Zegarra.
Zegarra told Agencia Andina that the oil has spread to Piura Department and is seen off the coast of Mancora, a small fishing village with popular, picturesque beaches and well-known surf point, located about 650-miles north of Lima.
The oil spill was caused after explosions on a 1400-ton, Class C tanker, on lease from the Peruvian navy to the oil company BPZ Energy, caused a fire. At the time of the fire, the tanker was stationed at an oil platform offshore from Zorritos, Tumbes Department.The accident resulted in one death and numerous injuries. (more…)
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Friday, February 1st, 2008
Peru’s first biodiesel plant was inaugurated in Lima’s Lurín district on Thursday with an investment of $25 million. The general manager of the Peruvian company Heaven Petroleum Operations, Samir Abudayeh, said the plant will have an initial daily production of 120,000 gallons of biodiesel with a later production at 240,000 gallons a day, Radio Programas radio reported.
“With this plant, using Peruvian technology, we begin the era of biofuels in our country,” said Abudayeh. “Biodiesel will create a series of development poles at the national level in the agriculture and agro-industrial sectors”
Made from fat or vegetable oil, biodiesel is a clean burning alternative fuel compared to conventional diesel. With little or no modifications, it easily replaces petroleum diesel in compression-ignition engines, which includes cars, heavy equipment and boats. (more…)
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Thursday, January 31st, 2008
Explosions on an oil tanker in northern Peru and a subsequent fire on the ship injured at least 15 people and caused an oil spill 30 km offshore from Zorritos, Tumbes Deparment, on the north coast near Ecuador. The Supe, a 1400-ton, Class C tanker, was on lease from the Peruvian navy to the oil company BPZ Energy, which used the tanker to transport crude oil and natural gas from its offshore platform in Block Z-1. The mayor of Zorritos, Tito de Lama, told Radio Programas radio there were three explosions on the ship which were likely caused by a short circuit. At the time of the explosions the tanker was reportedly stationed at the oil platform. It was later moved 2 kilometers, about 1.2 miles, away from the platform for safety precautions. Initial reports said that the oil platform was not damaged. (more…)
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Tuesday, January 15th, 2008
President Alan García announced Monday that the Spanish-owned Repsol YPF oil company has found more than 2 trillion cubic feet, TCF, of natural gas in Peru’s southern Cusco department. Repsol YPF reportedly discovered the reserve in the Kinteroni well, one of four in Block 57, located north of the Camisea nastural gas reserves in Block 88 and Block 56.
García said the discovery promises to stimulate further investment and oil exploration in the region, which holds some of the largest undeveloped gas reserves in South America, Radio Programas radio reported.
“This finding is very important, this discovery is very important, more than 2 trillion cubic feet,” said García. “They believe there could be as much as 2.5 trillion cubic feet, which is worth billions of dollars.” (more…)
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Friday, January 4th, 2008
The Pluspetrol oil company has told Peruvian authorities that the Camisea natural gas fields hold about 20 percent more reserves than originally estimated. The gas fields were believed to contain 10.86 trillion cubic feet, TCF, of natural gas. But according to daily El Comercio, Pluspetrol told the Energy and Mine Ministry the reserves contain 13.40 TCF.
Pluspetrol reportedly found that Block 88 has 10.4 TCF and Block 56 has three TCF of natural gas. The company’s general manager, Norberto Benito, said their data has been verified by the international energy consulting firm, Gaffney, Cline and Associates.
President Alan García said the increase in Camisea’s natural gas reserves brings Peru’s total reserves to about 20 TCF. García predicted natural gas could help power Peru’s internal energy market for the next 50 or 60 years. (more…)
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Friday, December 21st, 2007
The U.S. Export-Import Bank, Ex-Im, approved a $250 million loan for the second phase of the Camisea gas project Friday, following the lead of the Inter-American Development Bank which brushed off environmental and social concerns by approving a $400 million loan.
The loan will partially fund a natural gas liquefaction plant and other infrastructure on the pacific coast that would turn Peru into an exporter of liquefied natural gas, with markets in Mexico and possibly Chile and the United States for regasification.
The $3.9 billion project, headed by Texas-based Hunt Oil, is expected to generate an average of $230 million a year in incremental royalties and $90 million in income tax revenue for the Peruvian government. It is one of Latin America’s key energy infrastructure projects.
In 2003, Ex-Im denied the Camisea a $200 million loan to finance the first phase of the energy project, a transportation component, citing environmental concerns. On Dec. 13, a delegation of human rights and environmental activists from Peru met with bank officials in Washington to persuade them that threats to the fragile jungle eco-system and its indigenous inhabitants still exist.
The World Bank is expected to announce its decision whether to finance the project in mid-January.
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Wednesday, December 19th, 2007
The Inter-American Development Bank, IDB, approved a $400 million loan for Peru’s Camisea gas project today, brushing off appeals from environmentalists who insist it will do irreparable harm to the fragile jungle eco system and its indigenous inhabitants. The project consortium, headed by Texas-based Hunt Oil, will use the loan to begin construction of a natural gas liquefaction plant on Peru’s pacific coast. It will also create a marine terminal and a 253-mile, 34-inch, or about 86-centimeter, pipeline connecting the plant to the Transportadora de Gas del Peru pipeline.
According to the IDB, the project is expected to generate an average of $230 million a year in incremental royalties and $90 million in income tax revenue for the Peruvian government. At a total cost of $3.9 billion, the project is the biggest private investment in Peru’s history.
The Camisea gas fields are located in Peru’s south-eastern Amazon basin. It is the largest energy project in Peruvian history and known to hold some of the largest undeveloped gas reserves in South America. (more…)
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Friday, December 14th, 2007
A delegation of human rights and environmental activists from Peru appealed to officials from the World Bank, Inter-American Development Bank (IDB) and the U.S. Export-Import Bank (Ex-Im) yesterday to reject future loans to the Camisea gas project. The delegation argued that the banks would be breaching their social and environmental safeguard standards if they approve more than $1 billion in public financing to the project. The delegation includes Congresswoman Gloria Ramos and representatives of Peru’s national indigenous organization, AIDESEP.
If the loans are approved, the project would begin construction of a liquefaction plant on Peru’s pacific coast. The IDB and Ex-Im are expected to make their decision regarding the loans in late December. The World Bank will announce its decision in mid-January. (more…)
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