Moderador – Juan Miguel Cayo, Manager of Regulaltion to Endesa Group Latin America and ex Vice Minister of Energy and Vice Minister of Economy of Peru
The speaker of this Session was Rodney Carvalho, director of Pipelines Area of Odebrecht Latinvest and president of the South Peru Gas Pipiline – Transportadora de Gas, he analized the economic impact of energy projects’ development, such as the “South Peru Gas Pipeline” (See Presentation), in the south of the country. It should be noted that this project was promoted by PROINVERSIÓN and allocated in June 2014, to the South Peru Gas Pipeline Consortium made up by Odebrecht Latinvest (75%) and Enegas (25%) companies.
The main characteristics that he mentioned about this megaproject implementation are as follows:
- With regards to time, he indicated that the Consortium is going to save 14 months of the inicial estimated time if it is possible to transfer the EIA of Kuntur Transportadora de Gas, for South Peru Gas Pipeline to deliver energy at the end of 2019. And sections B and A will finalize in December 2016.
- With regards to logistics, he indicated that this is the biggest challenge that the project has to deal with, considering that first they have to transport all the materials by road to finally arrive to Malvinas by ship. About this issue, he stated that the first part of the pipeline will arrive to Callao in November.
- With regards to demand, he explained that even though the energy node in the southern area would be the demand mainstay of the project, there is also the possibility that natural gas from Lot 76 belonging to Hunt Oil could be connected through South Peru Gas Pipeline, and in the future it would be possible to think of a gas pipeline that reaches Bolivia from the branch that reaches Puno.
- With regards to the benefits that the project would generate, he explained that it is projected that South Peru Gas Pipeline generates a contribution between 1% and 2.5% to the country’s GDP.
- Finally, he indicated that Peru is a gas country but not an oil country, which will be reflected in the following years.
The panel of this session was made up by:
Javier García Burgos, CEO of IC Power, he began his participation explaning Kallpa’s participation in the tender carried out by Private Investment Promotion Agency (PROINVERSIÓN) for cold reserve projects (See Presentation), they were allocated the bid for the plant, whose capacity will be 500 MW, located in ILO.
He explained that currently the conditions to be provided by the Camisea’s Consortium are being analized because these conditions differ from the ones of the generator companies in Lima, which means they could not compete in the market. Meanwhile, they are evaluating the import of the required Diesel for the plant operation, which will be imported and received in the dock of PETROPERÚ S.A. located in ILO. Such importation is necessary since the Plants to be installed will use almost twice as much diesel as the country uses.
Christian Laub, CEO of Credicorp Capital and Chairman of the Board of Lima Stock Exchange,he explained that there are enough resources to finance projects as big as Camisea in Peru. Such is the case of the exportation project of Peru LNG S.R.L. that demanded an investment of USD $ 3,800 MM and, today, the South Peru Gas Pipeline project would demand an investment of approximately USD $ 6,000 MM.
He pointed out that the risks involved in such projects must be mitigated through government guarantees, sponsors’ guarantees, and guarantees assumed by the same companies that will develop the project, especially commercial risks.
He also indicated that in the alliance between Chile, Peru and Ecuador there are about USD $ 600 trillions destinated for the development of solid, predictable and, of course, viable projects.
Finally, he concluded his participation pointing out that Supply creates its own Demand so he wouldn’t concern that the demand in the south has been oversized because it would be supplied by the South Peru Gas Pipeline.
Edwin Quintanilla, Vice Minister of Energy of the Ministry of Energy and Mines, pointed out that an oversizing of the Supply, regarding the South Peru Gas Pipeline, will always be more beneficial to the country than an energy shortage situation.
He indicated that the Government is working on the development of projects that allow the continuing growth to the country; thus, they will reduce poverty. In this regard, he mentioned that they were still working on the Plan of Natural Gas Development that began with the allocation of the South Peru Gas Pipeline and will continue with pipelines that will bring natural gas to the Central and North parts of the country, being tested. He also indicated that the Government is analyzing the possibility of extracting ethane from natural gas as raw material for the development of new projects such as Petrochemical project.
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