March 16, 2010 – Jorge Barata, superintendent manager Odebrecht, has signed an agreement securing this Brazilian company a 51% stake in the gas pipeline project of Kuntur, to cost investments of US$1.500mil and secure the supply of natural gas from Camisea to the regions of Arequipa, Puno and Moquegua. The deal is to be formalised by early June when the project details are to be submitted to the government approval – the utility would have 1.085 Km and capacity for 800mil cubic feet per day. Odebrecht would partner with Conduit Capital, which pioneered the project that is tied to the natural gas reserves of the lots 56, 57 and 58. Barata believes Lot 58 to have reserves of 5 TCF, waiting for certification. The confirmation of the reserves is crucial to the Odebrecht sister company Braskem, to start planning a US$2bil petrochemicals complex in Peru near the ports of Ilo and Tatarani, for the local manufacturing of HDPE and PP.

Alejandro Segret, generla manager Juntur, says the gas pipeline would also supply manufacturing industries in Southern Peru.

To read the article in Spanish, visit El Comercio here.

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